The US company behind Claire’s Accessories has filed for bankruptcy protection as part of a move to reduce its debt by 1.9 billion US dollars (£1.3 billion).
Claire’s Stores said on Monday its shops, including 378 in the UK, will remain open as it presses ahead with a financial restructure.
It will see lenders including Elliott Management and Monarch Alternative Capital inject 575 million US dollars of fresh cash into the group.
We will complete this process as a healthier, more profitable companyRon Marshall, Claire’s chief executive
Claire’s is owned by private equity firm Apollo Global Management, which paid 3.1 billion US dollars for the company in 2007.
Ron Marshall, Claire’s chief executive, said: “This transaction substantially reduces the debt on our balance sheet and will enhance our efforts to provide the best possible experience for our customers.
“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.”
Claire’s, which specialises in ear piercing, fashion jewellery and accessories for young women, is the latest US retailer to run into trouble.
Toys R Us in the US and the UK announced last week that it would close or sell all its stores after going bust.
But Claire’s expects to emerge from bankruptcy in September and the retailer’s international subsidiaries are not part of the US filing.