L’Occitane Inc.’s American division (New York) has voluntarily entered Chapter 11 bankruptcy protection, according to a press release.
Due to high store rent obligations, the company determined a Chapter 11 process was the necessary path to right-size its brick-and-mortar presence, and 23 stores will be shuttered in the process. Its boutiques across the U.S. are currently open, and it reportedly has enough liquidity to support ongoing operations and “business-as-usual” for the time being.
Yann Tanini, Managing Director of L'Occitane North America, said, “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."