L'Occitane U.S. files for Chapter 11 bankruptcy, closing unprofitable stores
The U.S. division of L’Occitane en Provence filed for Chapter 11 bankruptcy on Tuesday as it seeks to close unprofitable stores.
The retailer of beauty and well-being products said that despite year-over-year growth in online sales, its U.S. business continues to be “impacted by disproportionately high store rent obligations that are no longer tenable.”
It will immediately close 23 locations. The filing does not include the L'Occitane en Provence brand or any operations outside the U.S.
"Today's action is a pivotal step forward in achieving the full potential of L'Occitane's U.S. business," said Yann Tanini, managing director of L'Occitane North America.
"Over the past year, we have moved aggressively to address COVID-related challenges head on, developing innovative new ways to connect with our community and continue to deliver the extraordinary L'Occitane beauty experience that our customers know and love, all while accelerating the essential transformation of our store footprint already underway.”
L’Occitane, whose stores are currently operating across the country in accordance with Covid-related guidelines, said it has ample liquidity to support ongoing operations across all channels and fulfill commitments to its valued employees, customers, and suppliers during the restructuring of its U.S. store lease portfolio.
It expects to complete the restructuring shortly. L'Occitane currently operates 166 stores in the U.S.
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