The Body Shop Canada has announced that it would sell off its operations to an affiliate of Serruya Private Equity Inc. The latter company is led by Michael Serruya, a cofounder of the frozen yogurt Yogen Früz chain. The deal was reached on December 6, 2024, and the agreement entails all assets of the cosmetics retailer being sold off by Serruya’s firm. TheBodyShop in Canada faced a troubled time recently with the brand going through major financial issues; there was a restructuring process.
It would not reveal details of the sale but the price for it; however, court documents suggest that the transaction involves a mix of cash and liability assumption. The sale is part of a broader strategy for navigating its financial troubles as alleviated by the reduction in financial support coming from the European parent company of The Body Shop Canada. The company had already drained the cash in Canadian operations, which had mortgaged it into debt, forcing the closure of multiple branches in the country.
The sale decision followed the process initiated in July 2024 when an Ontario judge authorized the sale of The Body Shop Canada. The company was then under financial strain, and the actions by its parent company had placed the Canadian arm in a precarious position. The court filings showed that there were 12 parties interested in purchasing the brand, which indicates the interest in keeping The Body Shop in the Canadian market.
Head of Serruya Private Equity Michael Serruya has considerable business acumen with his private equity firm investments in a variety of renowned firms, which include St. Louis Bar and Grill, Second Cup Coffee Co., Swensen’s, and Yogurty’s. The possible turnaround for struggling businesses, The Body Shop Canada, can leverage the brand management skills within his firm.
The takeover is the next chapter of The Body Shop in Canada with high hopes of rejuvenating the brand into the top form once more in Canadian retail sales, believing this time new management and money shall rescue it to shine.
