This Beloved Beauty Brand Is Closing Stores Nationwide
More than 400 jobs are at risk as the company shifts to focus on digital sales.
The coronavirus has devastated every aspect of life since it first started hitting the U.S. hard in March. And while it may not compare to the lives lost and health tolls it's taken, the pandemic has also wreaked havoc on the businesses we've loved for decades—even centuries. Now, after 111 years in business, beloved beauty brand L'Oréal announced the closing a number of the company's stores. According to a report from Bloomberg, the French company's Luxe Division in the U.S. will be restructuring to grow its digital commerce business while moving away from the brick-and-mortar model.
"Luxury consumer behavior in the U.S. has fundamentally evolved, and L'Oréal USA will be evolving its business to meet these new consumer expectations and preferences," the company said in a statement.
While L'Oréal has not yet announced the number of stores that will be affected by this decision, up to 400 jobs in the U.S. Luxe Division may be affected, though some may be able to transfer to other roles within the company.
This isn't the first hint of trouble for the company amid the pandemic. In August, Business Insider reported that many stateside employees were vocal about their objections regarding their return to in-person work in particularly hard-hit areas, including New York and California.
L'Oréal isn't the only company dealing with a seismic shift courtesy of COVID, however. Read on to discover which other companies are making tough decisions in light of the pandemic. And for more store closures, This Beloved Store From Your Childhood Is Closing 200 Locations.
Department store JCPenney filed for bankruptcy in May, announcing that it would be closing 144 of its stores across the United States. While the brand seemed to have initially found a way to emerge from the bankruptcy process, with mall operators Simon Property Group and Brookfield Property Partners lined up to purchase the company's retail operations and debt, some of the company's lenders are now challenging the division of assets from the sale. And for more stores shifting gears, This Beloved 200-Year-Old Shoe Company Could Be Disappearing.
Lord & Taylor
Lord & Taylor announced in August that the department store would be filing for Chapter 11 bankruptcy and closing all of its stores. "We believe it is prudent to simultaneously put the remainder of the stores into liquidation to maximize value of inventory for the estate while pursuing options for the Company's brands," said Ed Kremer, the company's chief restructuring officer, in a statement.
Home goods store Pier 1 announced its bankruptcy filing in May, and the company has moved quickly to close down its retail operations. Many of the brand's stores have already shuttered for good, and the remainder are on track to close by the end of October. And for more shopping news delivered to your inbox, sign up for our daily newsletter.
Discount department store Stein Mart wasted no time dismantling its retail operations following an August bankruptcy filing. By September, brokerage firm A&G Real Estate Partners had already listed all of the chain's 280 storefronts for lease. And for more information on the stores closing near you, This Beloved Home Store Is Closing More Than Half of Its Locations.
Movie theater chain Regal Cinemas announced in early October that it would be shuttering all of its theaters in the U.S. and U.K., with 536 stateside theaters and 127 cinemas across the pond closing their doors. The decision was made following the announcement that the latest installment of the James Bond franchise would be delayed for a year. "When the Bond decision arrived, a decision that followed numerous delays of other movies, we had to change the direction, close the cinemas and wait for a situation where the studios will be able to present a solid release schedule," Cineworld CEO Mooky Greidinger told Deadline.