The Body Shop ceases US operations, with plans to close dozens of stores in the UK and Canada

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. commence / kəˈmɛns / (v.) – to begin or start
    Example:

    The meeting with the president commenced exactly at 9 o’clock.


  2. liquidation / ˌlɪk wɪˈdeɪ ʃən / (n.) – the process of closing a business, in which the business can sell what it owns to pay its debts
    Example:

    After years of financial problems, the company went into liquidation.


  3. restructuring / ˌri ˈstrʌk tʃɚ ɪŋ / (n.) – the act or process of organizing a company, business, or system in a new way to make its operation more effective
    Example:

    The restructuring plan will save the company millions of dollars.


  4. insolvency / ɪnˈsɒl vən si / (n.) – (especially of a company) the condition or situation of not having enough money to pay debts, buy items, etc.
    Example:

    The company’s insolvency was a result of mismanagement.


  5. pursuant to / pərˈsu ənt tu / (prep.) – in a way that agrees with or follows something
    Example:

    Pursuant to company policy, employees must attend all training sessions.


Article

Read the text below.

The Body Shop has ceased its U.S. operations and is closing dozens of locations in Canada amid deepening financial struggles for the British beauty and cosmetics chain.


The Body Shop’s U.S. arm ceased operations on March 1, according to a company announcement. And the brand’s Canadian subsidiary commenced liquidation of 33 closing stores as part of wider restructuring proceedings.


These closings arrive just weeks after the U.K.-based retailer appointed insolvency administrators set to consider “all options to find a way forward” after years of financial struggles.


A spokesperson for FRP, the administrators hired by The Body Shop International, told The Associated Press that they have also announced plans to shutter 82 of 198 stores total in the U.K. Those closings are expected to occur over the coming weeks. FRP does not oversee The Body Shop’s U.S. or Canadian subsidiaries. A spokesperson for The Body Shop North America did not immediately respond to requests for further information.


In its March 1 announcement, The Body Shop Canada said it had filed for a notice of intention pursuant to the country’s Bankruptcy and Insolvency Act “to obtain a stay” of its parent’s administration proceedings in the U.K.—and “provide additional breathing room while it evaluates its strategic alternatives and implements certain restructuring initiatives.”


At the time, The Body Shop Canada said its total 105 stores were still open—but that the 33 closings, and end of online sales via Canada’s e-commerce platform, were set to arrive “in the near term.”


Specifics about the timing of closings and liquidation for U.S. locations were not immediately provided.


The Body Shop, which was founded by Anita Roddick and her husband back in 1976, is often hailed as an early champion of ethical practices in business. The retailer of soaps, creams and makeup has promoted fair-trading practices and products that were not tested on animals.


The brand became hugely popular in the 1980s, when it was listed on the London Stock Exchange, and grew to have stores in some 80 countries, including many operated through franchises.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • The Body Shop is often hailed as an early champion of ethical business practices. How important do you think it is for companies to promote ethical practices in today’s market? As a consumer, do you consider buying from a brand that has ethical business practices? Why or why not? Discuss.
  • Given the chance to start a company that promotes ethical business practices, what business would you start? What advantage will it have over other businesses that don’t promote ethical practices? Discuss.

Discussion B

  • The Body Shop became hugely popular in the 1980s, but it’s now ceased its U.S. operations and is closing dozens of locations in Canada. How do you think this would affect the job market in the said countries? Discuss.
  • Based on The Body Shop’s recent liquidation, what kind of business would you prefer to own, a small business or a big business? Why do you say so? Discuss.