The Body Shop Canada Ltd.
On March 1, 2024, The Body Shop Canada Ltd. (“TBS”) filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act. Throughout March 2024, TBS terminated the employment of approximately 20 head office employees and 200 retail employees from 33 closing store locations. These terminated employees, comprising both full-time and part-time, have not received termination pay, severance pay, and other owed amounts.
We have been retained by a significant number of former TBS Canada head office and retail employees to represent them in the proposal proceedings and seek recoveries of their owed amounts. We are currently in discussions with the Proposal Trustee (Alvarez & Marsal Canada Inc.) and counsel to TBS Canada to determine the next steps on behalf of the terminated employees.
If you are a former TBS Canada employee (both full-time or part-time) and have questions, please contact us by email at tbscanadaemployees@kmlaw.ca or call 1.888.502.7456.
Further, former TBS Canada employees have created a private Facebook Group to provide additional information and insight into these proceedings. To view the Group, please click here.
-
Latest Developments
-
December 19, 2024
Court rules Wage Earner Protection Program Act applies to the Body Shop Canada insolvency proceeding
On December 13, 2024, the Ontario Superior Court of Justice ruled the Wage Earner Protection Program Act, S.C. 2005, c. 47, s. 1 (“WEPP”) applies to the insolvency proceeding of The Body Shop Canada (“TBS Canada”). The Court made this ruling along with an order approving the sale of the company to an affiliate of Serruya Private Equity. As part of that sale, the purchaser will become a franchisee of the UK parent of TBS Canada. To view the WEPP Order and Endorsement of the Court, dated December 13, 2024, please click here.
The WEPP ruling is a positive development for TBS Canada employees who have been terminated throughout this proceeding without being paid termination pay or severance. WEPP is a program administered by the federal government and can provide a one-time payment of up to $8,507.66 to each employee in respect of their claims for unpaid wages, vacation pay, termination pay and severance.
Our firm has sought WEPP payments for the terminated TBS Canada employees since the start of this proceeding. On December 13, 2024, we appeared before the Court to highlight the importance of WEPP for terminated employees and emphasized that the sale of the company should only be approved if WEPP is available. The Court agreed with this position.
We understand Alvarez & Marsal Canada Inc. (the Monitor in TBS Canada’s CCAA insolvency proceeding) will provide further information to all terminated employees regarding the WEPP application process. Our website will also be updated with details regarding the application process as soon as it becomes available.
-
May 21, 2024
As of April 24, 2024, 40 employees have reached out to us for representation in the Proposal proceeding of The Body Shop Canada (“TBS Canada”). We are collaborating with a Chartered Professional Accountant to determine the maximum legal claim amount for these employees. Our estimate suggests the 220 terminated employees could collectively claim over $2M.
Prior to TBS Canada’s insolvency, events linked to the acquisition of its parent company by Aurelius IV UK Acquico Eight Ltd. have significance. On March 10, 2024, we met with TBS Canada’s counsel and the Proposal Trustee, stressing the need for representation for the terminated employees, who are in a vulnerable position. Unfortunately, TBS Canada’s counsel and the Proposal Trustee disagree, believing representation isn’t necessary for the employees.
On April 24, 2024, we appeared before Justice Osborne of the Ontario Superior Court of Justice to schedule a motion to appoint Koskie Minsky LLP as Representative Counsel to the 220 employees terminated by TBS Canada. This motion has been scheduled for July 4, 2024.
We encourage you to visit this webpage regularly for latest updates, as we will continue to post new information as it becomes available.
-
December 19, 2024
-
Documents
-
Contacts
Tollfree: 1.888.502.7456
