Charles Sternberg, Assistant Editor01.27.21
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.
The filing does not include the L’Occitane en Provence brand or any operations outside the U.S.; parent company L'Occitane International S.A.; or any other group subsidiaries, including ELEMIS and LimeLife.
Addressing Store Rent Obligations
L'Occitane says its business continues to be impacted by disproportionately high store rent obligations that are no longer tenable. As a result, the company determined that a Chapter 11 process was the necessary path to right-size its brick-and-mortar presence following repeated endeavors to engage with its landlords to address unmanageable store lease terms.
"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."
Tanini added, "Just like in L'Occitane's other markets around the world, we look forward to continuing to serve our loyal clients here in the U.S. in our boutiques, online, and through our amazing team of passionate beauty advisors. As always, L'Occitane is focused on creating a delightful and personalized customer experience, and we will continue to develop innovative products with unique benefits. Our unwavering commitment to sustainability and ambition to make a positive impact in the world are stronger than ever. We appreciate the continued support of our employees, community, and partners, and we are excited about the bright future of our U.S. business."
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.
The filing does not include the L’Occitane en Provence brand or any operations outside the U.S.; parent company L'Occitane International S.A.; or any other group subsidiaries, including ELEMIS and LimeLife.
Addressing Store Rent Obligations
L'Occitane says its business continues to be impacted by disproportionately high store rent obligations that are no longer tenable. As a result, the company determined that a Chapter 11 process was the necessary path to right-size its brick-and-mortar presence following repeated endeavors to engage with its landlords to address unmanageable store lease terms.
"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."
Tanini added, "Just like in L'Occitane's other markets around the world, we look forward to continuing to serve our loyal clients here in the U.S. in our boutiques, online, and through our amazing team of passionate beauty advisors. As always, L'Occitane is focused on creating a delightful and personalized customer experience, and we will continue to develop innovative products with unique benefits. Our unwavering commitment to sustainability and ambition to make a positive impact in the world are stronger than ever. We appreciate the continued support of our employees, community, and partners, and we are excited about the bright future of our U.S. business."
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.
