An Ontario judge has given the green light for the sales process of The Body Shop Canada to proceed, following a request from the company’s parent company, Natura & Co.
The decision was made by Justice Glenn Hainey of the Ontario Superior Court of Justice, who authorized the sales process to begin on Monday.
The Body Shop Canada, which has been in operation for over 40 years, is a well-known retailer of natural and ethically-sourced beauty and skincare products. It currently has 55 stores across the country and employs over 500 people.
Natura & Co, a Brazilian cosmetics company, acquired The Body Shop in 2017 from L’Oreal for $1.1 billion. However, the company has been struggling financially in recent years, with the COVID-19 pandemic exacerbating its financial woes.
In April, Natura & Co announced its plans to sell The Body Shop Canada as part of its global restructuring efforts. The company stated that the Canadian market was no longer a strategic priority for them and that they were looking to focus on other regions.
The sales process will be overseen by Alvarez & Marsal Canada Inc., a consulting firm that specializes in corporate restructuring and turnaround management. They will be responsible for finding potential buyers and managing the sale of The Body Shop Canada.
According to court documents, the sales process will be conducted through a confidential bidding process, with interested parties required to sign a non-disclosure agreement. The deadline for submitting bids is set for July 30, and the winning bidder is expected to be announced on August 6.
The court also approved a $1.5 million financing agreement to keep The Body Shop Canada afloat during the sales process. This will allow the company to continue operating and paying its employees and suppliers.
In a statement, Natura & Co expressed their gratitude for the court’s decision and their commitment to ensuring a smooth transition for The Body Shop Canada.
The next court hearing is scheduled for August 10, where the court will review the bids and approve the sale to the winning bidder.
The Body Shop Canada has been a beloved brand for many Canadians, and the outcome of this sales process will undoubtedly be of interest to many. We will continue to follow this story and provide updates as they become available.
