Mass debt for Claire’s Accessories causing bankruptcy talks
US based retailer Claire’s Accessories has been reportedly preparing for bankruptcy, following a mass of debt and a heavy reliance on shopping centres.
According to Bloomberg Claire’s is $2bn (£1.4bn) in debt, causing instability for the retailer.
Claire’s Stores Inc is attempting to reach new customers at local supermarkets and drugstores.
The company is reportedly closing in on a bankruptcy deal. As part of a Chapter 11 agreement, control of the business would pass from Apollo Global Management LLC to lenders such as Elliott Capital Management and Monarch Alternative Capital, reports Bloomberg.
The fashion accessories retailer has 4,220 shops and concessions across 45 countries, with 378 stores and 123 concessions in the UK.
The company’s 8.875 percent bond due 2019 fell about 5 cents on the dollar to 19 cents at 3:06 p.m. on Friday in New York, according to Trace bond price data.
It is not known yet if UK stores will be affected.
