L’Occitane store in Arles. Shutterstock
The American division of the luxury cosmetics company seeks Chapter 11 protection due to its heavy store network, which includes 166 locations in the US. The company plans to close 23 stores through the restructuring, after “repeated endeavors to engage with its landlords to address unmanageable store lease terms,” according to a press release. While beauty was one of the most resilient categories during the pandemic, the sales growth happened online, putting pressure on brands and retailers that rely on costly store networks.