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L'Occitane and committee’s Chapter 11 plan effective as of Aug. 31
By Sarah Lizee
Olympia, Wash., Sept. 2 – L'Occitane, Inc. and its official committee of unsecured creditors’ Chapter 11 plan of reorganization went into effect on Tuesday, according to a notice filed Wednesday with the U.S. Bankruptcy Court for the District of New Jersey.
The plan was confirmed on Aug. 25, as previously reported.
L'Occitane said it has successfully completed the restructuring of its U.S. lease portfolio, creating a sustainable store platform for the long term.
The optimized footprint includes 133 L'Occitane en Provence boutiques, providing the company with a go-forward brick-and-mortar presence to best serve customers across multiple channels, the company said.
The company said it plans to emerge at month's end from the Chapter 11 process, which began in January of this year to implement the store footprint optimization.
As previously reported, distributions under the plan will be funded by the reorganized debtor’s cash on hand and an exit loan facility provided by L’Occitane International, the parent of the debtor, in order to pay all claims under the plan.
The reorganized debtor will pay administrative claims, professional fee claims, priority tax claims, secured tax claims, other secured claims, other priority claims and general unsecured claims in full in cash.
The debtor will fund a professional fee claim reserve, which will be used to pay professional fee claims.
Existing intercompany claims, other than the $20 million loan from L’Occitane International, will be paid in cash.
Existing interests in the debtor will be retained.
L'Occitane is a New York-based retail chain that sells and promotes beauty and well-being products. The company filed bankruptcy on Jan. 26, 2021 under Chapter 11 case number 21-10632.
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