The Body Shop Files for Bankruptcy in the United States, Indonesian Franchise Claims Unaffected
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12 March 2024 21:49 WIB
TEMPO.CO, Jakarta - The Body Shop is closing its operations in the United States after filing for bankruptcy. The cosmetics company also confirmed that it has filed for restructuring in its home country, the UK, as well as Canada.
So, what about The Body Shop's operations in Indonesia? Along with the news of bankruptcy that has been blowing since the beginning of this year, The Body Shop Indonesia clarified the issue on February 26, 2024. The clarification was conveyed through the official Instagram @thebodyshopindo.
"But don't worry, what happens there will not affect our operations, The Body Shop Indonesia, as a franchise," The Body Shop Indonesia wrote, as quoted on Tuesday, March 12, 2024.
The Body Shop Indonesia, which is a franchise of the global The Body Shop, confirmed that there was indeed a restructuring at The Body Shop UK as part of the strategy to adapt to the UK’s market. The Body Shop Indonesia ensures that it will remain open and serve consumers in Indonesia.
"We are changing to serve you better!" it said.
The Body Shop was rumored to be bankrupt in February 2024. Its administrators cited mismanagement and a challenging retail landscape.
"The Body Shop has faced an extended period of financial challenges under past owners, coinciding with a difficult trading environment for the wider retail sector," the administrator said, cited by Reuters.
Last February, Reuters reported the Body Shop's business in the UK had fallen, putting 2,000 jobs at risk. The Body Shop is best known for promoting ethically sourced natural products and rejecting animal testing.
The beauty brand was one of the most popular retailers in the UK in the 1980s and 1990s. However, The Body Shop has faced much greater competition from new entrants in recent years.
RIRI RAHAYU
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