Emma Beauty Salon, a Lebanese beauty salon chain, has announced it is cutting more than 70 staff, while shutting down two other chains.
The chain announced on Monday it is shutting down three of its chains and laying off 50 workers.
The closure of Emma, a chain founded by Lebanese-born Lebanese-Canadian businessman, Rafik Al-Kheir, will allow the company to focus on expanding its services and products, said a statement on the chain’s website.
The company said it was also closing down its sister chain, La Masse, which operates in the United Arab Emirates, Saudi Arabia and Bahrain.
Al Jazeera’s Zainab Aljabbar, reporting from Beirut, said the chain was in the process of closing three stores in Beirut.
She said the company would be opening another shop in the capital, Beirut, later in the week.
“The chain has a lot of work to do in terms of expanding its presence in Beirut and other parts of Lebanon, and that’s why they are closing down stores,” Aljabgarb said.
The announcement comes after the Lebanese government said on Monday the country’s second largest cosmetics chain was facing bankruptcy.
The Lebanese business news site al-Akhbar reported the chain, which has about 30,000 employees, had reached the point where it was unable to pay its employees salaries and that it could not meet its debt obligations.
The state-owned operator of Lebanese cosmetics said it had paid its creditors $11.3 million to resolve the company’s outstanding debts, and it was working to raise $100 million from investors.
Al-Akbbar reported that the company had been struggling for several years to pay off debts and pay employees.