March 20, 2018
Claire’s Stores, Inc., headquartered in Hoffman Estates, IL, said Monday its US operations had filed for Chapter 11 reorganization at US Bankruptcy Court in Delaware. The jewelry and accessories retailer, which claims to have pierced more than 100 million ears worldwide, emphasized that its bankruptcy filing was intended to bring about a balance sheet restructuring, not an operational one.
“This transaction substantially reduces the debt on our balance sheet, and will enhance our efforts to provide the best possible experience for our customers,” said Claire’s CEO Ron Marshall. “We will complete this process as a healthier, more profitable company.”
Claire’s has reached a restructuring support agreement with first lien creditors led by Elliott Management Corporation and Monarch Alternative Capital LP. The retailer expects to complete the Chapter 11 process in September, emerge with over $150 million of liquidity, and reduce its overall indebtedness by approximately $1.9 billion. The case is being administered by Prime Clerk.
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