(Toronto) The Body Shop Canada plans to find a buyer as the company struggles to get its hands on enough inventory to maintain “robust” sales, after announcing it would seek protection from its creditors and would close 33 stores.
In an affidavit filed this week in a Toronto court, the director of the retailer’s Canadian operations says he has seen enough interest from unspecified parties to believe the company should try to find a buyer.
Jordan Searle says it’s unclear whether parent company The Body Shop International will support a sale or attempt to preserve the retailer’s Canadian operations.
The parent company filed for administration in the UK on February 13, while The Body Shop Canada announced plans to seek protection from its creditors in early March, when it was also reported to be ceasing operations in the USA.
Since the Canadian announcement and the closure of dozens of stores, Mr. Searle says the retailer’s sales have exceeded his forecasts, but the chain has been unable to obtain inventory because it relies on U.S. divisions and British for its goods.
He points out that the Canadian side of the chain faces an imminent risk of running out of core merchandise in the coming weeks and could be forced to close otherwise profitable stores.