The encyclopedia · Strategy & Leadership · Strategic decision · 2020–2023
Lush Norway collapsed after two years of pandemic losses — 70 jobs lost
The Norwegian subsidiary of UK handmade cosmetics chain Lush went bankrupt in March 2023, closing all 6 stores and laying off 70 employees.
Lush (Fersk Kosmetikk AS) · 2023-03-06
What happened
Lush is a UK-based handmade cosmetics brand founded in 1995, known for its packaging-free bath bombs, soaps, and skincare products. The Norwegian subsidiary, Fersk Kosmetikk AS, was established in 2008 and operated six physical stores across Norway (Oslo, Sandvika, Trondheim, Bergen, Stavanger) plus an online store.
The company had reported negative financial results since 2019. The COVID-19 pandemic and subsequent lockdowns caused a severe decline in foot traffic to its physical stores, which were the primary sales channel. The board chair described the 2022 result as 'gruesome.' Despite efforts to recover, the company had no other choice but to file for bankruptcy on 6 March 2023, laying off all 70 employees and closing its stores.
Lawyer Jostein Nordbø was appointed to handle the bankruptcy proceedings. The estate explored whether a buyer would continue operations, but ultimately the stores were closed for good. The bankruptcy marked the end of Lush's direct presence in the Norwegian market.
Why it happened
- Two years of pandemic lockdowns and restrictions destroyed foot traffic to Lush's physical stores, which were the company's primary sales channel.
- The company had been reporting negative results since 2019 — four consecutive years of losses — and had no financial buffer to absorb the pandemic impact.
- As a subsidiary of a UK parent, the Norwegian operation could not independently raise capital or restructure its debt; the parent was itself under pressure.
The lesson
A brand that depends on physical retail without a strong online channel is vulnerable to disruptions that reduce foot traffic. Four consecutive years of losses left no reserve for the next shock.
Sources
- E24 — Butikkjeden Lush er konkurs — 70 ansatte mister jobben
- NRK — Kosmetikkforhandleren Lush har gått konkurs
- Finansavisen — Kosmetikkforhandleren Lush har gått konkurs
- TV2 — Lush er konkurs — 70 ansatte mister jobben
- Nettavisen — Konkurs for kosmetikksuksess — 70 ansatte mister jobben
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