Ontario judge authorizes sales process for The Body Shop Canada
TORONTO - An Ontario judge has authorized a sale process which could see The Body Shop Canada land new owners.
Justice Peter Osborne granted an application today from the beleaguered retailer, which wants to be able to engage with potential buyers who could keep the business afloat.
The cosmetics retailer sought creditor protection earlier this year because its parent company, a European private equity firm, stripped it of cash and pushed it into debt, forcing it to close some stores.
Lawyers for The Body Shop Canada say 12 parties have come forward with interest in buying the brand, but any deal they reach is dependent on the U.K. parent company co-operating.
The Body Shop Canada needs its parent to co-operate because the U.K. business oversees the chain's licences and has long managed finances and inventory for its international arms.
The parent is currently up for sale, but counsel to The Body Shop Canada says that process is "well advanced" and could culminate soon.
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