The Body Shop plans to diminish its presence in the Canadian retail landscape with the impending closing of 33 stores after its parent company started administration proceedings in the United Kingdom and shuttered its operations in the United States.

The closings that represent nearly one-third of the beauty chain's 105 outlets in Canada are part of the company's restructuring proceedings under Canada’s Bankruptcy and Insolvency Act.

The Body Shop Canada issued a statement that said it is seeking to “obtain a stay of proceedings to provide additional breathing room while it evaluates its strategic alternatives and implements certain restructuring initiatives.” Alvarez & Marsal Canada Inc. has been appointed as trustee to oversee the restructuring.

The Body Shop's U.K. operations were put under administration in mid-February, with potential plans to close dozens of stores. Germany-based private equity firm Aurelius Group acquired the brand for about CA$357 million at the end of 2023. At the time of the deal, the Body Shop had 900 company-owned stores in 20 countries and an additional 1,600 franchised stores.

Aurelius Group then sold a portion of the Body Shop's business in mainland Europe and parts of Asia to an international family office earlier this year.

The Body Shop Canada found itself in a liquidity crisis because of the actions of its parent company in the United Kingdom, counsel for Body Shop Canada said in a March 3 filing with the Ontario Superior Court of Justice.

Representatives for the Body Shop Canada and Aurelius Group didn't immediately return emailed requests seeking a comment.

The Canadian operations employ 784 workers across the county. The Body Shop Canada owes about CA$2.5 million to unsecured creditors. All of its 105 stores are leased and it owes CA$900,000 to landlords, according to the court filing.

The Body Shop Canada now has a backlog of overdue debt that has ballooned to approximately CA$3.3 million, according to the court document. The company has sent disclaimers of leases to landlords of the stores that are closing and it has eliminated 20 positions at its head office at 1 Yorkdale Road in Toronto with plans to cut another 200 jobs at the outlets that are closing, according to the filing.

The Body Shop, which describes itself as an “activist beauty brand” and has prominently declared its opposition to animal testing, was founded in 1976 by Anita Roddick. It expanded fast through a multitude of franchise agreements. Roddick sold the company to France-based L’Oreal in 2006. Brazil-based Natura & Co. purchased the Body Shop in 2017.

The Body Shop's global sales have slowed in recent times because of intense competition in the sector, according to retail analysts. Last August, the Body Shop Canada launched an initiative to open 50 outlets within various Shoppers Drug Mart stores across Canada.

Body Shop Canada's online sales via its e-commerce store stopped last week.

The Body Shop Canada relies on its U.S. counterpart for distribution, logistics and e-commerce services, according to the court filing. The Body Shop U.S. ceased operations, effective March 1, and began shutting down and implementing mass employee layoffs in the U.S., according to the filing. Therefore, Body Shop Canada no longer has access to its e-commerce platform or the ability to ship to its wholesale partners — Shoppers Drug Mart and Amazon.ca — or any way to receive new inventory.

The Body Shop's U.S. distribution facility is located at 5036 One World Way in Wake Forest, North Carolina. The Body Shop U.S. filed a notice with the state of New York about laying off 28 employees from its office at 368 Ninth Ave. that it closed March 1 because of "bankruptcy," according to public documents.

Just under half of the outlets slated to close in Canada are located in Ontario, as Canada's most-populated province will see 15 Body Shop locations shut down, seven will close in Alberta, four in Saskatchewan, five in the Atlantic provinces, three in British Columbia and one in Manitoba. All of the stores set to close are "underperforming," according to the court filing, and located in malls except for one outlet on Queen Street in Toronto.

Liquidation sales started at the 33 stores last week. The stores scheduled to close remain open as of March 1 but are expected to close in the near term, according to the statement.

The Canadian stores set to close are located at:

• Bayview Village (Toronto)
• Lawson Heights (Saskatoon)
• Rideau Centre (Ottawa)
• Carlingwood Mall (Ottawa)
• Lloyd Mall (Lloydminster)
• Semiahmoo (White Rock)
• Cataraqui Town Centre (Kingston)
• Londonderry Mall (Edmonton)
• Shoppers Mall (Brandon)
• Champlain Place (Dieppe)
• Lynden Park Mall (Brantford)
• Stone Road Mall (Guelph)
• Corner Brook Plaza (Corner Brook)
• Mayflower Mall (Sydney)
• Sunridge Mall (Calgary)
• Cornwall Centre (Regina)
• McAllister Place (Saint John)
• The Centre (Saskatoon)
• Dufferin Mall (Toronto)
• Medicine Hat Mall (Medicine Hat)
• The Shops at Don Mills (Toronto)
• Fairview Park Mall (Kitchener)
• Midtown Plaza (Saskatoon)
• Timmins Square (Timmins)
• Hillside Shopping Centre (Victoria)
• Park Place (Lethbridge)
• Toronto Pearson Terminal 1 (Toronto)
• Lambton Mall (Sarnia)
• Place d'Orleans (Orleans)
• Truro Mall (Truro)
• Lansdowne Place (Peterborough)
• Queen Street East (Toronto)
• Village Green (Vernon)