The Body Shop Canada Ltd.
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.
