The Body Shop declares bankruptcy and closes its stores in the US

The Body Shop has filed for bankruptcy and is closing stores in the US and UK, citing Chapter 7 liquidation in New York and submitting reorganization applications to Canada.

The Body Shop filed for bankruptcy and is already closing its stores in the United States. Based in the United Kingdom, the chain filed for Chapter 7 liquidation in New York last week, per a court document. According to the statement, the business would sell some assets to settle its debt with creditors. Earlier this month, the beauty store announced that it had submitted reorganization applications to Canada and its native United Kingdom.

The chain said it closed its remaining US outlets, while some of its stores in those nations will stay open. A Body Shop representative did not immediately answer a request for comment. According to The Guardian, about fifty sites were open in the United States at the time of the bankruptcy filing.

Body Shop was created in 1976 in Brighton, United Kingdom, by Anita Roddick, a rights activist and entrepreneur. She launched the store using the name of an earlier Berkeley, California, store. In 2006, beauty giant L'Oréal purchased Body Shop for an estimated $1.3 billion. It changed hands once more before a private equity firm paid almost $250 million to purchase it in December. However, the business failed in February, and administrators blamed difficult retail conditions and poor management.