L’Occitane’s U.S. Unit Closes 40 Stores, Plans to Repay Creditors

The bankrupt U.S. unit of L’Occitane International SA filed a plan to repay its creditors in full after shuttering 40 of its retail locations.

L’Occitane Inc.'s plan, filed July 9, would restructure about $161 million in debt, some $21 million of which is owed to general unsecured creditors. French parent company L’Occitane International is funding the plan.

The body, face, fragrance, and home products retailer said it has used the Chapter 11 process to right-size its “brick and mortar footprint” in the U.S., reducing its store count from 166 to 126. The company expects to be profitable after emerging from ...