Another Day, Another Store Files Bankruptcy Closing All Stores in NY

Another day, another store filing bankruptcy and closing all stores, including 7 in New York State.

One day after Joann Fabrics and Crafts announced it was filing Chapter 11 bankruptcy, a popular U.K based chain with locations in the U.S. is closing up shop.

The Body Shop, which began in the United Kingdom and expanded to the U.S., Canada and several other countries, filed for Chapter 7 liquidation. The cosmetic company that was one of the first to prohibit testing products on animals will close all store locations in America, including 7 in New York. The company had around 50 locations in America total. In Canada, 33 of the 105 shops have closed, with the loss of more than 200 jobs.

Launched in 1976 in Brighton, U.K., by entrepreneur and rights activist Anita Roddick (using the name of an earlier store founded in Berkeley, California), Body Shop was acquired for the equivalent of $1.3 billion in 2006 by beauty giant L'Oréal. It subsequently changed hands again before being acquired by a private equity group in December for approximately $250 million."

No word on the amount of jobs loss in the US.

What Is The Difference Between Chapter 7 And 11?

To sum up this question easily- Chapter 7 is considered a liquidation bankruptcy: it doesn't require a repayment plan but the business has to sell some assets to pay creditors. Chapter 11 is considered a reorganization bankruptcy that allows businesses to maintain their operations while creating a plan to repay creditors.

Unlike Chapter 7, Chapter 11 gives a company the opportunity to reorganize its debt and try to reemerge as a healthy business."