Bankrupt Claire’s Stores Inc. plans to file its pre-negotiated reorganization plan around April 9, and have Sept. 14 as its effective exit date from bankruptcy proceedings.The affordable jewelry and accessories chain, which targets young women, teens and tweens, filed a voluntary Chapter 11 petition on Monday in a Delaware bankruptcy court seeking court protection. The company’s international operations are not part of the filing.The company said its restructuring efforts are “supported by holders of approximately 72 percent of the company’s First Lien Debt, 8 percent of its Second Lien Notes and 83 percent of its Unsecured Notes.” The chain also said it is current on payments to its trade vendors and has ample liquidity to maintain its partnerships with vendors, “including by making timely payments on customary trade terms.”Ron Marshall, Claire’s chief executive officer, said, “We will complete this process as a healthier, more profitable company, which will position us to be an even stronger business partner for our suppliers, concessions partners and franchisees.”According to a court document filed with a Delaware Bankruptcy Court Monday by Scott E. Huckins, executive vice president and chief financial officer of Claire’s, the chain’s substantial debt load at $1.9 billion — and a cash interest expense of $162 million — needed to be restructured. The pre-negotiated plan with its debt holders will allow the company to effect a “comprehensive balance-sheet restructuring, effort to right-size the debtors’ footprint, preserve the going-concern value of the Claire’s Group’s businesses, and protect the jobs of thousands of the debtor’s employees.”Huckins said Claire’s has a presence in 45 nations worldwide via a combination of more than 7,500 company-owned stores, concessions locations and franchised stores. Of those sites, 1,440 stores are company owned and average 1,000 square feet of selling space under the nameplates Claire’s and Icing in the U.S. and Puerto Rico. He also said a “Claire’s store is located in approximately 99 percent of major shopping malls throughout the United States.” Claire’s is the company’s core brand, while its Icing concept targets the older female consumer between ages 18 to 35. The retail model focuses on the “treasure hunt” format, and Huckins said the company estimated that it has “pierced more than 100 million ears worldwide.”The cfo said the carefully curated merchandise assortment equals to adjusted earnings before interest, depreciation and amortization of $212 million for the 52-week period ended Feb. 3, versus revenues of about $1.3 billion. He also said the stores on average maintain about 13,000 stock keeping units at any given time, and sources from 500 vendors. The company employs 10,000, including 6,400 employees who work on a part-time basis.The bankruptcy petition listed estimated assets at between $1 billion to $10 billion, and estimate liabilities in the same range. Its largest unsecured creditor is the Bank of New York Mellon at $221.5 million.Rowland Schaefer founded Fashion Tress Industries in 1961 as a wig retailer. The company in 1973 acquired Claire’s Boutiques, a chain of 25-store jewelry chain. Following the acquisition, the focus of the company shifted to fashion jewelry and accessories. The ear-piercing service began in 1978, while the Icing business was started in 1996. Private equity firm Apollo Management acquired the company in 2007 in a $3.1 billion leveraged buyout.
Exclusive: @longchamp is planning to stage its first official runway show at New York Fashion Week this fall. The French leather goods firm has expanded into ready-to-wear as part of its repositioning as a lifestyle brand. The show, scheduled for September 8, will also cap the brand’s 70th anniversary celebration. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @dominiquemaitre)
The Duke and Duchess of Sussex undertook their first overseas engagement as a married couple in Dublin. The trip included multiple events and outfits changes, including this black dress by @emiliawickstead that Meghan Markle wore for a party at the British Ambassador’s home. #wwdfashion #royals
At 20 years old – and with an estimated net worth of $900 million - @kyliejenner is the youngest person to ever make @forbes’ annual list of America’s Richest #SelfMadeWomen. “It’s incredible to be recognized for something I’m so passionate about, and I’m really grateful for that. I’ve always loved makeup and worked really hard to bring the first lip kit to the market,” said Jenner on founding @kyliecosmetics. See who else is on the list on WWD.com. #wwdnews #wwdbeauty (📷: @rainerhosch)
“The collection is inspired by Tulum and the Mayan Riviera – its laid-back luxury, life of cabanas, untouched coastline, natural habitats, exotic cocktails and jungle parties with renowned DJs,” said Matteo Maniatty, creative director and cofounder of @descendantofthieves, on the brand’s inspiration for its latest collection. See more designer sketches and inspirations on WWD.com. #wwdfashion #nyfwmens #nyfw
@riccardotisci17 is releasing a limited-edition capsule collection as part of his anticipated runway debut for @burberry in September. Delivered in a series of instant drops, this is the second Burberry capsule collection announced since Friday, when Tisci broke the news on his collaboration with @viviennewestwood. Get all the details on WWD.com. #wwdfashion #wwdnews
“It’s like a Cinderella story. You get a little fake, you get a little real, you put it together and voilà,” said legendary rapper Slick Rick, who helped pioneer the merge of luxury and streetwear. WWD’s @ariahughes spoke to @therulernyc about his jewelry collection, his collaboration with @bally and how the industry has evolved – link in bio. (📷: @kristaschlueter)
@ragandbone and @eminem are teaming up on a special capsule collection of streetwear pieces. Sold at a one-day pop-up in London’s Soho on Friday, the collection features three different T-shirt designs and a hoodie. The capsule is set to kick off the rest of Eminem’s shows in his European Revival Tour, which ends on Sunday. Get all the details on WWD.com. #wwdfashion