L’Occitane has filed for Chapter 11 bankruptcy and will close at least 23 of its 166 U.S. stores, according to court papers. The retailer’s parent company and its international operations, as well as the ELEMIS and LimeLife brands, will be unaffected by the move.
L’Occitane expects the restructuring process to better position its flagship banner for growth in the U.S. by reducing its rent payments.
“Despite L’Occitane’s success in advancing its strategy, including dramatic year-over-year growth in online sales, its business continues to be impacted by disproportionately high store rent obligations that are no longer tenable,” said the retailer in a statement. “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.”
L’Occitane noted that it has “ample liquidity” and will continue operating its stores and ecommerce site during the restructuring process.