The U.S. division of French beauty products maker L’Occitane International SA has filed for bankruptcy, behind on $15 million in rent and seeking to shed lease obligations after the Covid-19 pandemic cut into sales.
The U.S. unit L’Occitane Inc., which operates 166 boutiques in 36 states and Puerto Rico, filed a chapter 11 petition Tuesday in the U.S. Bankruptcy Court in Trenton, N.J., for the purpose of relieving itself of what it called increasingly untenable lease obligations. Like other retailers, L’Occitane has been hurt by the pandemic, which has made consumers less willing to shop in person, according to a declaration filed in bankruptcy court by Yann Tanini, regional managing director for L’Occitane.
The company filed court papers seeking to reject 29 “burdensome” lease agreements and exit from those locations, where it said its rent obligations “no longer reflect the market.” L’Occitane joins the ranks of a growing number of retailers, from huge department-store chains such as J.C. Penney Co. to boutiques like Sur La Table Inc., to have filed for chapter 11 during the pandemic.
Did anyone else walk into these stores expecting them to sell chocolate?
Maybe if they treated people better.
Report the real news! How is Henry the 'fix it man' who lives down the street doing?
I just got my first products from there, and love them! Need to see if I can get more!
Love this company and their commitment to sustainable procurement of their products. I hope the restructuring ends well.
Tragic! I love L'Occitane products! 😪😪
Sad. ETTD