Tween retailer hires outside firm for debt advice
Claire's Stores Inc. has hired Lazard as its investment banker to help it address the chain’s debt load.
The tween jewelry and accessories retailer is burdened with $2.2 billion of long-term debt, according to FactSet. The majority of the debt, which starts to come due in 2019, was taken on when Claire’s was acquired in a leveraged buyout by Apollo Global Management in 2007 for approximately $3.1 billion.
In a statement, the retailer stated that the hiring of Lazard is not related to operations, which it said remain strong. In December, Claire's posted net sales of $315 million for the fiscal third quarter, a 0.8% increase from the year-ago period. (Sales would have decreased 1.1%, however, excluding the favorable impact from foreign currency exchange rate changes, primarily due to store closures.) Consolidated same-store sales increased 1.1%.
“The steps we are taking now with Lazard will help to ensure Claire's long-term success for years to come," said Ron Marshall, CEO, Claire’s. "We believe this is the right time to undertake this initiative and we want to assure our vendors, employees and stakeholders that we believe we have ample liquidity to honor our commitments through the completion of this process."
Claire’s sells its products in 4,220 locations in 45 countries around the world, through company-owned stores, concessions and franchise locations.
The tween jewelry and accessories retailer is burdened with $2.2 billion of long-term debt, according to FactSet. The majority of the debt, which starts to come due in 2019, was taken on when Claire’s was acquired in a leveraged buyout by Apollo Global Management in 2007 for approximately $3.1 billion.
In a statement, the retailer stated that the hiring of Lazard is not related to operations, which it said remain strong. In December, Claire's posted net sales of $315 million for the fiscal third quarter, a 0.8% increase from the year-ago period. (Sales would have decreased 1.1%, however, excluding the favorable impact from foreign currency exchange rate changes, primarily due to store closures.) Consolidated same-store sales increased 1.1%.
“The steps we are taking now with Lazard will help to ensure Claire's long-term success for years to come," said Ron Marshall, CEO, Claire’s. "We believe this is the right time to undertake this initiative and we want to assure our vendors, employees and stakeholders that we believe we have ample liquidity to honor our commitments through the completion of this process."
Claire’s sells its products in 4,220 locations in 45 countries around the world, through company-owned stores, concessions and franchise locations.