NEW YORK, Jan. 26, 2021 /PRNewswire/ — L’Occitane, Inc. (“L’Occitane” or the “Company”), a leading U.S. retailer of attractiveness and very well-getting products prosperous in purely natural and natural ingredients that preserves and celebrates the traditions of Provence, nowadays introduced that it has taken action to additional accelerate a transformation presently properly underway to greatest position its business for the potential. With its iconic international model and maximum high-quality choices beloved by many, L’Occitane has productively developed its business enterprise product to provide customers nationwide throughout various channels. The initiative declared nowadays will allow for the Company to build a sustainable U.S. retailer system for the extensive phrase.
To implement this retail store footprint optimization plan, such as the contemplated exit of unprofitable locations, the Firm commenced a voluntary circumstance underneath Chapter 11 of the U.S. Personal bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey. The submitting does not include the L’OCCITANE en Provence brand or any functions outside the U.S. dad or mum organization L’Occitane Global S.A. (“Group”) or any other Group subsidiaries, like ELEMIS and LimeLife.
Boutiques Open Enough Liquidity to Assistance Ongoing Functions Across All Channels
L’OCCITANE en Provence boutiques throughout the region are open and working safely and securely in accordance with all relevant COVID-associated suggestions. The Organization has ample liquidity to assist ongoing functions throughout all channels and satisfy commitments to its valued staff, clients, and suppliers in the everyday system throughout the restructuring of its U.S. shop lease portfolio, which it anticipates finishing in quick order.
Transformation Properly Underway to Obtain Legendary Brand’s Whole Opportunity in U.S.
In spite of L’Occitane’s success in advancing its system, like dramatic calendar year-more than-year development in on-line profits, its small business carries on to be impacted by disproportionately superior retailer hire obligations that are no extended tenable. The Firm established that a Chapter 11 approach was the necessary route to suitable-measurement its brick-and-mortar presence adhering to repeated endeavors to have interaction with its landlords to tackle unmanageable retail outlet lease terms.
“Today’s action is a pivotal step ahead in acquiring the complete opportunity of L’Occitane’s U.S. enterprise,” claimed Yann Tanini, Controlling Director of L’Occitane North The united states. “Over the past 12 months, we have moved aggressively to handle COVID-associated troubles head on, producing impressive new techniques to hook up with our local community and go on to deliver the amazing L’Occitane attractiveness expertise that our shoppers know and enjoy, all whilst accelerating the crucial transformation of our store footprint already underway. We glance ahead to functioning collaboratively with our landlords to realize partnerships that make economic feeling in this current retail atmosphere and best place our marquee brand’s boutique providing for a long time to occur.”
Mr. Tanini added, “Just like in L’Occitane’s other markets all around the environment, we glimpse ahead to continuing to serve our faithful customers right here in the U.S. in our boutiques, on line, and by means of our incredible workforce of passionate splendor advisors. As always, L’Occitane is centered on creating a pleasant and individualized shopper experience, and we will continue to build modern goods with exclusive added benefits. Our unwavering motivation to sustainability and ambition to make a favourable influence in the earth are more robust than at any time. We recognize the ongoing help of our personnel, community, and associates, and we are psyched about the vibrant foreseeable future of our U.S. organization.”
First Day Motions
The Firm has filed with the Courtroom a collection of customary motions looking for to keep on running its enterprise as standard, allowing for ongoing prosperous engagement with prospects in-shop, on the internet, and as a result of L’Occitane’s clienteling purposes, specially for the duration of this period of ongoing social distancing. These “first day” motions incorporate requests to continue on to shell out wages and present rewards to workers as regular, honor all reward playing cards in the standard system, and maintain consumer guidelines. The Business intends to continue on to spend suppliers in the common study course for all goods acquired and providers rendered just after the filing, just as it had accomplished prior thereto.
Supplemental Information and facts
Further data about L’Occitane’s lease portfolio restructuring, which includes Courtroom filings, is available at https://conditions.stretto.com/LOccitane.
Fox Rothschild LLP is serving as authorized counsel, RK Consultants LLC is serving as monetary advisor, and Hilco Actual Estate, LLC is serving as actual estate advisor to the Company.
About L’OCCITANE en Provence
Founded by Olivier Baussan more than 40 yrs back, L’OCCITANE captures the true art de vivre of Provence, supplying a sensorial immersion in the purely natural magnificence and way of life of the South of France. From the texture of L’OCCITANE solutions to the scent, each skincare, body treatment, and fragrance system promises pleasure by way of beauty and nicely-getting – a instant wealthy in satisfaction and discovery that goes further than tangible positive aspects to make a various expertise of Provence. L’OCCITANE solutions are offered at united states.loccitane.com and in boutiques during the U.S.
L’OCCITANE en Provence, North The us
Ashley Arbuckle, Vice President of Model Promoting and Wholesale
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