Claire's Stores Inc., a fashion accessories chain, has filed for bankruptcy.
The retailer and its affiliates have filed for bankruptcy in United States Bankruptcy Court for the District of Delaware. The move could help with Claire's $2 billion debt load. "Claire's is growing, not shrinking, its business. The company expects its concessions business to grow by more than 4,000 stores in 2018," the company said in a statement.
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Apollo paid more than $3 billion to acquire Claire's from Rowland Schaefer, and began expanding the business, adding about 350 stores from 2010 to 2013. Claire's expects to reduce debt by about $1.9 billion, after reaching an agreement with creditors including Elliott Management Corp. and Monarch Alternative Capital, which will give the company some $575 million in new capital.
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Claire's isn't the only retailer to file bankruptcy recently. Toys 'R' Us also filed for bankruptcy and plans to liquidate all of its stores in the U.S. Toys 'R' Us Inc. voluntarily filed for relief under Chapter 11 in September 2017. The retailer was $5 billion in debt as of April 29. At the time of bankruptcy, the company said it would close about one-fifth of its store locations. Closing sales are expected to conclude in April.
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