The US division of French beauty brand L’Occitane en Provence has filed for bankruptcy. This was reported by the fashion website Business of Fashion.
Things are not going well for the US subsidiary of the company, which was founded in 1976. That is why Chapter 11 was called. This term refers to Chapter 11 of the US Bankruptcy Code, which allows for reorganization under the country’s bankruptcy laws. According to court documents filed in New Jersey, L’Occitane plans to reject certain leases in order to better position itself for long-term success.
The company has an extensive store network in the United States out of a total of 166 stores located across the country. During the restructuring, 23 stores will have to close.
The Promotion only affects stores located in the United States, not the parent company, its affiliates or other brands in the group. All beauty salon stores, which are primarily located in malls, will continue to trade, and “have sufficient liquidity to support normal business operations across all channels,” L’Occitane North America said in a statement.