Home NEWSCONSUMER NEWS L’occitane files for bankruptcy in U.S.

L’occitane files for bankruptcy in U.S.

by Arun Shirishkar

L’Occitane Inc. has commenced a voluntary case under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey.

Bankruptcy file in U.S. Court
L’Occitane Inc., represented by Fox Rothschild, filed in the U.S. Bankruptcy Court for the District of New Jersey with $162 million in debt, blaming its financial trouble in part on the impact the COVID-19 pandemic has had on the retail sector. The New York company is a subsidiary of Switzerland’s L’Occitane International SA and is known for its beauty and well-being products under the brand name L’OCCITANE en Provence. The Swiss parent has not filed for bankruptcy.

“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. We look forward to working collaboratively with our landlords to achieve partnerships that make economic sense in this current retail environment and best position our marquee brand’s boutique offering for years to come.” L’Occitane en Provence boutiques across the country are open and operating safely in accordance with all applicable Covid-related guidelines. The company claims to have ample liquidity to support ongoing operations across all channels and fulfill commitments to its valued employees, customers, and suppliers in the ordinary course during the restructuring of its U.S. store lease portfolio, which it anticipates completing in short order.

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