News about The Body Shop filing for bankruptcy in the US and Canada came as a surprise. The Guardian reported that closures included nearly 80 of the company's 198 UK stores, all 50 US stores, and 33 of the 105 Canadian locations. The situation extends beyond North America, with Germany, Denmark, Ireland, and Belgium also entering insolvency, resulting in store closures and potential job losses for thousands of employees. How did this situation come about? Financial Struggles Looking into the past, their headquarter’s struggle was not the only news resulting in their bankruptcy. It is revealed that they have been struggling since 2019. When The Body Shop was acquired by Natura, this South American beauty giant bought Avon that eventually led to piles of debt with high interest rates when the pandemic hit. Wrong Market Approach Following the huge debt, many of The Body Shop’s global markets were unprofitable and Aurelius’s confidence was overshadowed by financial failures. Premium Beauty News stated that the lack of transparency on rebuilding strategies made The Body Shop’s future looking grim in competing in the cosmetics industry. However, not all hopes are lost. Attempt in Rebuilding Faced with financial difficulties, The Body Shop's administrators are exploring financing options to save jobs and pay down debt. However, store closures are still anticipated as part of a broader restructuring plan to ensure the brand's survival in the competitive global beauty market. Despite these challenges, The Body Shop International remains committed to its core values of sustainability while innovating with strategies to navigate inflation and develop products that align with current market trends. Why are we still seeing The Body Shop in Indonesia? The Body Shop is a long-standing renowned brand in Asian countries including Indonesia. The Body Shop Indonesia is independently established under Global Head Franchise with different operating systems and strategies than the Europe and US markets. Suzy Hutomo – CEO of The Body Shop Indonesia – reported to CNBC that The Body Shop’s franchise in Indonesia will grow and develop, while sticking to the authentic values the company holds. While their brand's name is popping out in news outlets, The Body Shop Indonesia will continue to strive in producing sustainable, natural, ethical, and animal-cruelty free cosmetics. Under the more independent management, they will pursue consistent growth in Asia and stay committed to green marketing strategies. The Body Shop's story teaches us that innovation can be a powerful tool for recovery, even after a setback. By staying true to their core values while adapting to changing market trends, they may find a path to future success. However, is this the right time for them to implement new strategies, or should they focus on stabilizing their finances first? What do you think? Sources: - CNBC: Bos The Body Shop Indonesia Buka Suara Soal Kebangkrutan di AS - Premium Beauty News: What is the outlook for The Body Shop after its sudden collapse? - The Guardian: The Body Shop files for bankruptcy in the US and Canada