Canada Global(Web News)The Canadian subsidiary of the UK beauty and cosmetics shop announced on Friday.
The Body Shop Canada will close about a third of its stores and end online sales as it seeks creditor protection,
a court filing shows the company owed $3.3 million to unsecured creditors. Over and owed about $16,400 to secured creditors.
The company did not say how many workers would lose their jobs as a result of the store closures in other cities, including Toronto, Ottawa, Edmonton, Calgary, Saskatoon and St. John’s.
The company will no longer accept gift cards, sell new gift cards or offer refunds as part of the restructuring, Jordan Searle, president of The Body Shop North America, said in a memo sent to Canadian staff on Friday. The move comes after The Body Shop International was acquired and
placed into administration by a private equity firm, restructuring it without paying off debts. or allowed to wind up.
The retail expert says the online store’s closure is a ‘surprise’.
Craig Peterson, founder and publisher of Retail Insider, said the closure of the online store was surprising when the writing was on the wall for the company’s Canadian stores after the UK branch filed for administration.
