L’Occitane U.S. Unit’s Bankruptcy Plan Approved, Trimming Stores

Cosmetics retailer L’Occitane International SA’s bankrupt U.S. unit won approval of its reorganization plan to keep open 133 domestic stores and repay all creditor claims.

Approving L’Occitane Inc.'s Chapter 11 plan Tuesday, Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey overruled an objection from the Justice Department’s bankruptcy watchdog.

The U.S. Trustee’s office took issue with plan provisions that release the French parent company and related non-bankrupt parties from potential litigation stemming from the bankruptcy case.

“What we have here are consensual releases by all creditors, who are unimpaired,” Kaplan said during a ...