Claire’s Stores Inc. has filed for chapter 11 protection, the girls’ accessories retailer said on Monday, as it succumbs to lower mall traffic like many of its peers, Reuters reported. Claire’s expects to reduce debt by about $1.9 billion, and said it reached an agreement with creditors including Elliott Management Corp and Monarch Alternative Capital LP, which will give the company some $575 million in new capital. Claire’s, which had over $1.3 billion in annual sales, joins several other U.S. retailers in bankruptcy as people increasingly shop online, shunning specialty brick-and-mortar stores. Claire’s has received a commitment of $135 million in debtor-in-possession financing from Citigroup, and expects to complete the chapter 11 process in September. The Hoffman Estates, Ill.-based retailer’s international subsidiaries are not part of the U.S. bankruptcy filings, Claire’s said in a statement. Read more.
Explore various strategies on how the tough times ahead for clients in the newspaper, brick-and-mortar retail or coal industries can be addressed in a bankruptcy, whether through a restructuring or a wind-down and liquidation of the company. Make sure to attend the "Obsolescence as a Catalyst" session at the Annual Spring Meeting.
