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March 19, 2018
Claire’s Stores Inc. has filed for bankruptcy but rather than closing stores plans to add more than 4,000 sites this year.
The jewelry and accessories retailer known for its ear-piercing services at its Claire’s and Icing stores filed for Chapter 11 bankruptcy in Delaware. Its international subsidiaries are not part of the filing.
Claire’s Stores operates more than 7,500 locations in 45 countries, including two stores in The Empire Mall.
According to a news release issued by Claire’s: “The company’s management is confident that, through the restructuring process, Claire’s will cement its position as one of the world’s leading specialty retailers of fashionable jewelry, accessories and beauty products for young women, teens, tweens and kids for many years to come. Unlike other retailers that have come before it, Claire’s has commenced its restructuring process from a position of unique operational strength.”
It expects to report a 13 percent increase in EBITDA, or earnings before interest, taxes, depreciation and amortization, for fiscal 2017 compared with the previous year.
The company has obtained $135 million in debtor-in-possession financing commitments, including an asset-based lending facility and term loan from Citigroup Global Markets Inc.
In addition, its first-lien creditors have agreed to provide the company with $575 million of capital.
According to the news release, Claire’s will emerge from bankruptcy in September with more than $150 million of liquidity and having reduced its debt by $1.9 billion.
International retailer Claire’s Stores Inc. has filed for Chapter 11 bankruptcy.