The Body Shop Belgium declared bankrupt, UK arm loses trademark lawsuit with Dutch-based Rituals

29 Feb 2024 --- The Body Shop saga continues, with the retailer declared bankrupt in Belgium after the UK operations recently collapsed into administration, with FRP Advisory managing the ordeal. 

The Body Shop must also compensate Dutch home and body fragrance company Rituals after losing a lawsuit over using the word “ritual” in its spa product line. The Court of Appeal in The Hague, the Netherlands, found The Body Shop guilty of copying Rituals’ range of skin care products for years. The company must compensate its competitor with an amount determined separately. 

Bankrupt in Belgium
The Belgian branch of The Body Shop was declared bankrupt by the District Court of Central Netherlands. A spokesperson for the office of the curator, Alice van der Schee, confirmed the bankruptcy to RTL Z.

The company has about twenty branches. A Dutch trustee settled the bankruptcy as the stores legally fall under the Dutch business unit, The Body Shop Benelux. 

However, the British cosmetics chain’s Dutch shops remain open, with 150 employees. The retailer has approximately 900 company-owned stores worldwide and another 1,600 franchise branches.

The Body Shop's troubles continue.Earlier this month, The Body Shop staff were reportedly told that more than 60 stores and the head office in Germany, where the business employs approximately 400 people, were likely to close. An insolvency specialist, Dr. Biner Bähr, at the White & Case law firm, has been appointed to handle the German business.

Workers in Belgium, where the chain has approximately 16 stores and 50 employees, were also reported to have been told that administrators were to be appointed.

The UK high street giant Next is reportedly considering a rescue bid for the troubled UK company while the beauty supplier continues to thrive in India, emphasizing that the FRP Advisory will focus on fostering partnerships in Asia, Europe and the Middle East.

This followed reports that taxpayers may pay millions of pounds to staff laid off by The Body Shop following its fall into administration in the UK. According to The Telegraph, workers for the company were told they would have to make claims through the government-backed redundancy payments service for their payoffs.

Rituals lawsuit
The lawsuit with Rituals centers on a skin care line from The Body Shop. Launched in 2015 in the Benelux area, The Spa of the World has four variants: Relaxing Ritual, Revitalizing Ritual, Blissful Ritual and Firming Ritual — with the word “ritual” prominent in company marketing. The products include body wash, body lotion and massage oil. 

Rituals filed a lawsuit accusing The Body Shop of trademark infringement and demanded that it stop using the word “ritual.” The Body Shop argued that its use of the word was descriptive and is commonly used in the cosmetics and skin care industries.

Earlier this month, the court ruled that The Body Shop copied Rituals and ordered it to cease and desist. However, it did not ask for compensation, saying that the Dutch brand did not clearly indicate how it had suffered damage.

The Body Shop appealed against the ruling, but the court confirmed the first ruling, finding The Body Shop guilty of copyright infringement. Following the appeal, it was also ruled that The Body Shop must compensate Rituals for the damage suffered.

By Sabine Waldeck