Acccessories Retailer Claire’s Files for Chapter 11 Reorganization
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.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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