The Body Shop Canada to be sold to Serruya Private Equity

Photo: The Canadian Press

The exterior of The Body Shop store in Toronto is seen on March 4, 2024.

The Body Shop Canada is due to be sold to a company led by the co-founder of frozen yogurt chain Yogen Früz.

The cosmetics retailer says in court filings that an agreement it signed on Dec. 6 will see it sell all of its assets to an affiliate of Serruya Private Equity Inc.

The affiliate is run by businessman Michael Serruya, whose private equity firm has also had investments in St. Louis Bar and Grill, Second Cup Coffee Co., Swensen's and Yogurty's.

The price Serruya's firm will pay for The Body Shop Canada was redacted from court documents but includes both cash and the assumption of certain liabilities.

An Ontario judge authorized a sale process for The Body Shop Canada in July, after 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 previously said 12 parties had been interested in buying the brand.