Claire's eyeing US bankruptcy, reportedly appoints advisors in UK
The reports come weeks after rumours surrounding a potential sale of the business began circulating in the US, where it was reported by Bloomberg that a pitch had been drawn up for potential buyers.
The media outlet has now said Claire's is considering filing for bankruptcy protection in the region, under the guidance of Houlihan Lokey Inc. and Alvarez and Marsal, which are believed to be working on a deal for such proceedings.
In the UK, meanwhile, the Telegraph has reported that restructuring experts at Interpath have been tasked with seeking out investors willing to rescue all or part of the company's British operations.
The news has fuelled speculation that Claire's may end up enacting a geographical break up of its business, potentially resulting in wide-spread store closures.
Claire's has long been facing financial difficulties, having racked up 25 million pounds in losses over the last three years, and falling into the red during the year to March 2024. Pressure has since mounted as the retailer faces an outstanding 480 million dollar loan due for repayment in December 2026.
The company had already faced a bankruptcy of its US business in 2018, when, at the time, its owner, Apollo Global Management, had transferred its assets to creditors.
Claire's currently operates around 2,750 stores across 17 countries, and is also housed in a number of department stores throughout the US and Europe.
FashionUnited has contacted Alvarez and Marsal and Claire's with requests to comment. Interpath and Houlihan Lokey declined to comment.
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