The downfall of the beauty empire: cosmetics
According to The Guardian, The Body Shop, a famous cosmetics brand in the 2010s, has filed for bankruptcy in the US and Canada. The well-known brand is also struggling to pay suppliers in Australia. Overseas businesses with high profits from the conglomerate are grappling with cash shortages after the parent company in the UK collapsed in February.
The Body Shop in the US has closed 50 stores and filed for bankruptcy. Assets are being sold to pay off debts, affecting about 400 related jobs, including jobs at the distribution center holding millions of dollars worth of shares.
In Canada, 33 out of 105 stores have closed, resulting in over 200 job losses.
The Body Shop has declared bankruptcy in multiple countries.
In Australia, where the conglomerate operates nearly 100 stores and is responsible for over 20 stores in New Zealand, the company is facing setbacks in order to cover significant debts.
The Body Shop in the UK collapsed in February, just months after Aurelius – a German private equity firm – acquired the cosmetics group. The deal was completed in January and put into operation, but management lasted less than 6 weeks.
Aurelius is now a major creditor in the UK. The group is seeking to regain control of The Body Shop brand from other countries. Currently, branches in Germany, Denmark, Ireland, and Belgium are unable to make payments.
The Body Shop, founded in 1976 by human rights activist Anita Roddick, has been highly regarded for its sustainable, ethical, non-toxic, and animal-testing-free products.
According to CNN, The Body Shop changed ownership multiple times and experienced significant growth when it was acquired by the giant conglomerate L’Oreal in 2006. After a period of thriving development, the global brand has gradually declined since being acquired by Natura & Co of Brazil.
In 2023, Natura & Co announced that The Body Shop was facing difficulties. Despite having more than 2,500 retail points in 80 countries and being available online in 60 markets, the brand’s business operations have not been smooth.
The Body Shop Vietnam “unaffected”?
On its fanpage, The Body Shop Vietnam asserts that it is not affected by the ongoing restructuring process worldwide. The Body Shop Vietnam is under the umbrella of InNature Berhad Group, listed on the Kuala Lumpur Stock Exchange in Malaysia. InNature owns over 122 stores in 3 countries: Malaysia, Vietnam, and Cambodia.
“The InNature Board affirms that our business model with The Body Shop in our 3 markets is a form of global franchise partnership. The ongoing restructuring activities in the UK, US, and other markets have no impact on the business operations of InNature Berhad,” stated a representative of The Body Shop.
The Body Shop Vietnam has announced plans to expand its store network in bustling city centers in Ho Chi Minh City and Hanoi this year. The cosmetics brand intends to further strengthen its online business, which is currently booming in Vietnam, especially through social media.
The Body Shop Vietnam claims to operate independently.
To prove their actions match their words, The Body Shop Vietnam celebrated 15 years since its launch in Vietnam by opening a flagship store in Ho Chi Minh City.
In response to customer concerns about product quality, including production standards compared to the quality of imported products, directly from the US or Europe, a representative of The Body Shop Vietnam stated that products displayed and distributed in Vietnam are officially imported and of the same quality as those in the UK.
According to observations by Tiền Phong, the brand’s fanpage in Vietnam is still active and regularly posts. The brand carries out numerous campaigns that align with its ethical values, as set by the parent company.
