The Body Shop Canada sells majority of its business, 100 workers to be fired
The Body Shop Canada, a popular cosmetics retailer, has been granted approval by an Ontario court to sell the majority of its business to a private equity firm. This decision was made during a virtual hearing presided over by Justice Peter Osborne, who allowed the sale to proceed to an affiliate of Serruya Private Equity Inc, based in Markham, Ontario.
Serruya Private Equity Inc is led by the co-founder of Yogen Fruz and has investments in various industries such as automotive, real estate, and fast-food businesses like St. Louis Bar and Grill, Second Cup, and Swensen’s. The firm has not yet provided any comments regarding the acquisition of The Body Shop Canada.
The Body Shop Canada initiated the process of selling its business in July after filing for creditor protection earlier in the year. The retailer faced financial difficulties, which led to the closure of 33 stores and the accumulation of debt. As part of the sale to Serruya, 59 properties owned by The Body Shop Canada will be acquired, including flagship stores at prominent locations like the West Edmonton Mall, Toronto Eaton Centre, the Pacific Centre in Vancouver, and the Halifax Shopping Centre.
Following the closure of 33 stores, The Body Shop Canada currently operates 72 locations. Legal representatives for the retailer have indicated that the remaining sites not acquired by Serruya will undergo a liquidation process. Approximately 600 employees, including 100 seasonal workers, will receive termination notices, but around 500 individuals are expected to be rehired by the new owner.
In addition to obtaining approval for the sale, the court has agreed not to disclose the financial details of the transaction. Natalie Renner, a lawyer representing The Body Shop Canada, cited the sensitivity of the price and the potential negative impact on future sales processes if the information is revealed prematurely.
The sale of The Body Shop Canada to Serruya Private Equity Inc marks a new chapter for the retailer, which is expected to benefit from the expertise and resources of its new owner. The deal is set to be finalized on Monday, pending any unforeseen developments.
