British Cosmetics Brand Leaves Brazil for the Second Time Blaming Tax Rates

05/15/2018 - 11h38

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FROM SAO PAULO

British cosmetics store Lush announced on Monday (the 14th) that it will be closing its doors in Brazil. The company will begin shutting down its stores and factory on June 20th.

In a statement, the brand said that Brazil is a very difficult country for a British company to operate in.

"Despite rising sales, the high tax rate and the prolonged economic recession coupled with political instability have made it impossible for Lush to continue investing and profiting in the country."

Divulgação Lush Store in São Paulo

Before closing its doors, the store will sell all of its products with a 50% discount rate - with the exception of the Charity Pot body lotion and accessories.

Lush denied that the store was leaving the country because of a lawsuit involving businesswoman Sandra Isper Rocha, who was responsible for bringing the brand to Brazil the first time around in 1999.

Lush had already left the country in 2005, but it returned nearly 10 years later, in 2014.

The cosmetics store, which was founded 23 years ago, is known for using fresh products, such as organic fruits and vegetables, and for standing against animal testing.

The company claims to have raised R$ 280 thousand (US$ 77.3 thousand) from Charity Pot sales in Brazil. According to Lush, the money collected from Charity Pot sales after taxes goes to NGOs. Of the money collected, R$ 127 thousand (US$ 35 thousand) have been donated to 23 organizations.

"Donations for Brazilian projects will continue until all the money set aside gets used up".

Translated by THOMAS MATHEWSON

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