Why does Canadian Body Shop stores shutdown?

The Body Shop Canada Limited has just dropped a bombshell: 33 of its 105 Canadian stores are shutting down. Why? Well, they’ve filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act (Canada). The company is diving headfirst into a strategic evaluation, looking for that golden opportunity while they implement some restructuring initiatives.

What’s happening with online sales in Canada?

As we speak, liquidation sales are kicking off at nearly a third of their locations. And guess what? The Body Shop US Limited has hit the brakes on operations too. If you’re thinking of browsing their online store, think again. It’s currently undergoing some TLC, with a message promising a grand return shortly.

Now, let’s rewind a bit. Remember when The Body Shop International Ltd. waved the administration flag in the UK? Yeah, that happened not too long ago. 75 stores in the UK are closing, and a hefty 40% of their headquarters crew are facing the dreaded layoff, according to The Canadian Press.

The recent takeover of The Body Shop International Limited by AURELIUS GROUP in December is still sending ripples through the industry. In a statement dripping with optimism, AURELIUS declared their commitment to breathing new life into the brand. They’re all about that operational excellence and revving up the business to its former glory.

Tristan Nagler, partner at AURELIUS, couldn’t contain his excitement, calling The Body Shop an “iconic British brand.” He’s ready to roll up his sleeves and work some magic alongside CEO Ian Bickley and the rest of the crew.

How can Whitten & Lublin help?

Bankruptcy does not excuse employers from paying severance and unpaid wages owed to past employees. However, the reality may be very unpleasant for current employees in these circumstances. An employee becomes an unsecured creditor to its bankrupt employer, and must get in line behind other creditors, such as taxes owed to the government and debts held by secured creditors like banks, who are also needing to be paid, and as secured creditors will be paid first.

If you or someone you know is dealing with a bankrupt employer, it is important to speak with an experienced employment lawyer to understand your workplace rights. The employment lawyers at Whitten & Lublin can help you navigate your legal options regarding your specific circumstances. If you are looking for employment lawyers and would like more information about what Whitten & Lublin can do for you, please contact us online or by phone at (416) 640-2667 .