Claire’s amended bankruptcy plan gets court approval, eyes its exit from Chapter 11
Claire’s Stores is moving forward with its reorganization strategy, and is planning an early exit from bankruptcy.
The tween/teen jewelry and accessories retailer has won court approval for its plan for reorganization — this is the company’s third amendment to the plan. The newly approved deal, which is supported by all of the company's major creditors and sponsored by an Ad Hoc Group of First Lien Creditors led by Elliott Management Corporation and Monarch Alternative Capital LP, Claire’s will eliminate approximately $1.9 billion of the company’s debt, and gain access to $575 million of additional capital. Having resolved all stakeholders' issues with respect to the plan, the company expects to complete its financial restructuring and successfully emerge from Chapter 11 by early October.
"The plan of reorganization approved by the court today gives Claire's the financial strength necessary to cement our position as one of the world's leading specialty retailers of fashionable jewelry, accessories and beauty products for young women, teens, tweens, and girls," said CEO Ron Marshall.
"We have already seen year-over-year growth in same-store sales and are gaining significant traction in our newer concessions business,” he added. “Our strengthened balance sheet will allow us to further the initiatives already underway, enhance our customer experience, and continue our positive growth trajectory."
The bankrupt tween/teen jewelry and accessories retailer filed for Chapter 11 bankruptcy protection in March. Claire’s was acquired in 2007 in a leveraged buyout by private equity firm Apollo Global Management LLC for $3.1 billion. Claire’s international subsidiaries are not included in the filing. Claire’s has continued to operate its business during its restructuring process.
As of Aug. 4, Claire's Stores operated 2,471 stores in 17 countries throughout North America and Europe.
The tween/teen jewelry and accessories retailer has won court approval for its plan for reorganization — this is the company’s third amendment to the plan. The newly approved deal, which is supported by all of the company's major creditors and sponsored by an Ad Hoc Group of First Lien Creditors led by Elliott Management Corporation and Monarch Alternative Capital LP, Claire’s will eliminate approximately $1.9 billion of the company’s debt, and gain access to $575 million of additional capital. Having resolved all stakeholders' issues with respect to the plan, the company expects to complete its financial restructuring and successfully emerge from Chapter 11 by early October.
"The plan of reorganization approved by the court today gives Claire's the financial strength necessary to cement our position as one of the world's leading specialty retailers of fashionable jewelry, accessories and beauty products for young women, teens, tweens, and girls," said CEO Ron Marshall.
"We have already seen year-over-year growth in same-store sales and are gaining significant traction in our newer concessions business,” he added. “Our strengthened balance sheet will allow us to further the initiatives already underway, enhance our customer experience, and continue our positive growth trajectory."
The bankrupt tween/teen jewelry and accessories retailer filed for Chapter 11 bankruptcy protection in March. Claire’s was acquired in 2007 in a leveraged buyout by private equity firm Apollo Global Management LLC for $3.1 billion. Claire’s international subsidiaries are not included in the filing. Claire’s has continued to operate its business during its restructuring process.
As of Aug. 4, Claire's Stores operated 2,471 stores in 17 countries throughout North America and Europe.