Latest news with #chapter
Miami Herald
28-06-2025
- Business
- Miami Herald
After Chapter 11 bankruptcy, fashion chain faces sale or closure
Building a brand around being trendy has one key problem. It's fairly impossible to stay trendy forever. A brand like The Gap has come in and out of relevancy, but at most periods in its history, it has had a core audience. Related: Struggling burger chain closing restaurants, won't raise prices Without that core audience, a retail brand built on being trendy invariably has high highs and very dangerous lows. By their nature, trends end. We are not wearing bellbottoms anymore, although history tells us they will probably come back. Kids don't play with pogs and Beanie Babies have gone from being collectibles back to being stuffed animals. As a business, one of the hardest groups to appeal to is younger teenagers. Some retail chains have captured that group but it tends to be fleeting. Younger people move on from things faster than adults. One minute everyone has rubber bands as bracelets and the next anyone seen wearing that trend is horribly out of fashion. Don't miss the move: Subscribe to TheStreet's free daily newsletter Claire's, a once popular mall retailer that sells mostly to teenagers, has been struggling for years. The chain filed for chapter 11 bankruptcy in 2018 and, while it survived, it has never really recaptured its mojo. Now, the struggling retailer faces all sorts of new competition, and it's no longer on trend. Those are problems its current owner appears to not have the patience to solve. When Claire's survived Chapter 11 bankruptcy in 2018, it emerged under the ownership of Elliott Management and Monarch Alternative Capital. It's no longer a public company so, it's hard to know exactly where the chain sits financially, but some new media reports suggests that the retail brand has continued to struggle. The retailer, which mostly sells accessories aimed at younger teen girls seems to struggle to define its brand even on its own website. "Claire's is a global brand powerhouse for self-expression, creating exclusive, curated and fun fashionable jewelry and accessories, and offering world-leading piercing services. The company operates under two brand names: Claire's and ICING," it posted. That's accurate, but does not tell the full story. Claire's sells disposable items meant to be impulse shopping for teenagers. The chain has suffered as rivals like Schein, Temu, and even Amazon have entered that space. More Retail News: McDonald's brings back unexpected breakfast item after 6 yearsIconic fast-food burger chain announces late-night hours expansionMcDonalds' menu brings back breakfast items Chick-fil-A fans love The chain's owner has been shopping Claire's partially due to concerns over President Donald Trump's tariffs impacting pricing and margins. The company also has a $500 million loan coming due in December 2026. If a buyer cannot be found, the owners could sell off the global brand in pieces in order to pay off its debts. Retail expert Neil Saunders remains hopeful that a buyer can be found and that a closure won't be necessary, but he does see changes coming. "I am sure there are buyers out there, the question is what price they are willing to offer. With high debt levels and imminent loan payments, Clare's needs a buyer that is able to inject cash or sustain losses. That necessarily reduces the value of the business. It may also require the business to be sold off piecemeal," he posted on RetailWire. Craig Sundstrom seems slightly more optimistic. "Gee you're already bankrupt, and you get acquired by a well-known activist could have possibly seen this coming? That having been said, I believe they'll find a buyer…it seems like every company, however hopeless, does. It may be someone with more dollars than smarts," he added. The company operate more than 2,750 Claire's stores in 17 countries throughout North America and Europe and 190 ICING stores in North America. It also sells Claire's products in thousands of concessions locations in North America and Europe, and has more than 300 franchised Claire's stores, located primarily in the Middle East and South Africa. Related: Pepsi-owned brand charged with selling people bags of air Mohamed Amer, a retail consultant, does believe a buyer will be found, but he's not confident that the brand will survive. "Debt, tariffs, competition: Claire's perfect storm. Private equity loaded Claire's with debt, tariffs are squeezing margins, and consumer spending is shifting – but the underlying brand and distribution assets could be valuable to someone with a different vision and a cleaner balance sheet. The question isn't whether Claire's current model works (it doesn't), but whether someone can reimagine what Claire's could become," he posted. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Business Wire
04-06-2025
- Business
- Business Wire
Top Restructuring Lawyers Kyle Ortiz and Brian Shaughnessy Join Herbert Smith Freehills Kramer in New York
NEW YORK--(BUSINESS WIRE)-- Herbert Smith Freehills Kramer announced today that leading restructuring attorneys Kyle J. Ortiz and Brian F. Shaughnessy have joined the firm as partners in its Bankruptcy and Restructuring Group. Ortiz and Shaughnessy advise debtors, creditors, and other parties in interest in complex restructurings both in and out of court. On June 1, 2025, Kramer Levin officially combined with Herbert Smith Freehills to become Herbert Smith Freehills Kramer, known as HSF Kramer. Ortiz has represented debtors and creditors in some of the largest and most complex chapter 11 cases of the past fifteen years including Eletson Holdings, LATAM Airlines, Greensill Capital, Pacific Drilling, Westinghouse, SunEdison, American Airlines, and Lehman Brothers. He has also represented investors and other creditors in complex restructuring matters, including cross-border restructurings. An experienced trial lawyer, Shaughnessy has nearly two decades of experience in complex business disputes involving bankruptcy, securities and contract issues, as well as regulatory and corporate governance matters, among others. 'We are delighted to welcome Brian and Kyle as the first new hires of HSF Kramer,' said Justin D'Agostino, Global CEO of Herbert Smith Freehills Kramer. 'Kyle is a widely-respected and dynamic adviser. Their addition enhances the pre-eminence and depth of our restructuring team and fits squarely into our strategic plan.' 'Kyle and Brian's deep experience in high-stakes restructurings and distressed situations will be instrumental in helping clients navigate an uncertain economic landscape,' said Amy Caton and Ken Eckstein, HSF Kramer's Heads of Bankruptcy and Restructuring, US. 'Their insight, creativity, and commercial acumen are a perfect fit for our solutions-driven group.' Paul Schoeman, executive partner of the U.S. region for Herbert Smith Freehills Kramer, said: 'I'm thrilled that Kyle and Brian are joining our premier bankruptcy and restructuring practice. Their arrival underscores the commitment that we at HSF Kramer have to building on our strengths and attracting top-level talent in key markets.' Ortiz added, 'I have consistently enjoyed working with and across from Kramer Levin's world-class restructuring team. I'm incredibly excited to join this team and to take advantage of the global reach and industry expertise that the HSF Kramer platform now has to offer.' Ortiz received his J.D. from The University of Chicago Law School and his B.A. from Northern Michigan University. Shaughnessy earned his J.D. from Georgetown University Law Center and his B.A., cum laude, from Harvard College. About Herbert Smith Freehills Kramer Herbert Smith Freehills Kramer (HSF Kramer) was formed in June 2025 through the transformational combination of Herbert Smith Freehills and Kramer Levin, creating a world-leading global law firm. With over 6,000 people including c.2,700 lawyers and spanning 26 offices, HSF Kramer provides comprehensive legal services across every major region of the world. Uniquely positioned to help clients achieve ambitious objectives, HSF Kramer delivers exceptional results in complex transactions and high-stakes disputes.
Business Insider
15-05-2025
- Business
- Business Insider
David's Bridal is opening a new, higher-end boutique to appeal to Gen Z brides
David's Bridal is launching curated boutiques for Gen Z brides seeking affordable luxury. The first Diamonds & Pearls location opens Thursday in Delray Beach, Florida. The store is more intimate and elevated compared to a typical David's Bridal, the CEO told BI. David's Bridal, the largest bridal retailer in the US, is opening a new higher-end boutique catered to Gen Z brides looking for a more luxurious, personalized, and curated experience. The first Diamonds & Pearls store is set to open on Thursday in Delray Beach, Florida, with another location planned to open later this year. The store is smaller, more curated, and more upscale than the average David's Bridal store, which are typically sprawling, budget-friendly stores. "It's definitely affordable luxury," Kelly Cook, the CEO of David's Bridal, told Business Insider of the new boutique. "The environment itself is much more refined and elevated. We have champagne, we have hors d'oeuvres, we've got free bags that come with your gowns." Cook, who took over as CEO in April, said the mission of David's Bridal is to become "the largest AI, retail, media, and planning marketplace for brides." As part of that mission, the company, which in 2023 filed for chapter 11 bankruptcy for the second time, is focused on serving all brides, including higher-end ones. That's where Diamonds & Pearls come in. The gown selection is more curated, with about one-third the number of products as a traditional David's Bridal store. The selling space is also smaller at about 2,000 square feet instead of the 5,500 square feet you'd find at a larger David's Bridal. It's also the only David's Bridal location where brides can try on couture options from brands like Marchesa and Viola Chan. Though the dresses lean more upscale, Cook said there would still be more affordable options, ranging from $500 to $5,000. According to the wedding website The Knot, the average cost of a wedding dress in 2025 is around $2,000. The Knot also found that the average cost of a wedding was $33,000. Overall, the vibe of the store is more similar to an independent bridal boutique than a typical David's Bridal, according to Cook. There's velvet furniture, marble accents, and curtains separating the dressing areas and the back of house. The store wants to cater to Gen Z's love of luxury as the generation continues to make up a greater share of America's brides, with its oldest members now 28. Gen Z consumers are expected to account for 25% to 30% of luxury market purchases by 2030, according to Bain & Company. While many independent boutiques sell made-to-order dresses that can take nine to 12 months to receive, Diamonds & Pearls can deliver dresses in a week if needed due to David's Brial's own manufacturing, Cook said. They will also have dresses that brides can take home the same day. "You're getting the intimacy of the boutique, but the global scale of David's," she said. The stores also incorporate large, interactive digital screens that brides can use to browse David's Bridal's full selection or ask for suggestions from the company's AI-powered wedding planning tool, Pearl, which can make recommendations based on Pinterest boards. Cook said that when they tested the store with brides who had previously shopped at David's Bridal, the customers said the shop felt more intimate and like they could get a more personalized experience due to its smaller size. While only two Diamonds & Pearls are planned for now, Cook said the company has identified up to 100 potential markets for future stores.
Miami Herald
12-04-2025
- Business
- Miami Herald
Beloved mall retailer will shutter even more locations this year
Twenty years ago, if you needed to buy clothing, shoes, or household decor, it's highly likely that you got into your car and drove to your local shopping mall. The mall has been a staple of American life since the '80s, and one where many teenagers under 18 went to meet their friends and spend a fun afternoon or evening. Don't miss the move: Subscribe to TheStreet's free daily newsletter In the last decade or so, however, shopping malls seemed to be at first suffering, then moving toward the brink of extinction as consumers shifted their habits. Amazon's Prime shipping became so fast (often same-day for millions of items) that the same consumers who once drove to the mall to make their purchases realized they could save time by simply placing an online order. Related: Another popular mall retailer closing stores nationwide for good While the news has been full of gloom about the future of shopping malls, however, data on customer behavior tells a different story. Foot traffic in shopping malls was up by 12% in 2022 compared to 2019, according to a report published in June 2023 by Coresight Research. Traffic in average- to lower-income areas was also up by 10%. Malls in higher-income areas - meaning that the average shopper earns more than $200,000 a year - were more than 95% leased in 2022, which suggests a simple takeaway. High earners may still prefer to shop in person, especially for higher-ticket items like handbags and clothing. All of this said, some shopping mall staples are still struggling, and one of the best-known names has unfortunately just announced that more store closures are on the way. JCPenney, which has been in business for 123 years as of 2025, has announced plans to shutter eight more locations this year. Most of the closures are in malls. The locations include the Asheville Mall in Asheville, North Carolina; the Fox Run Mall in Newington, New Hampshire; the West Ridge Mall in Topeka, Kansas; the Westfield Annapolis Mall in Annapolis, Maryland; and the Pine Ridge Mall in Pocatello, Idaho. Related: Bankrupt retail chain's CEO pay package threatens its future Store closures not in shopping malls include the Shops at Northfield in Denver, Colorado; the Charleston Town Center in Charleston, West Virginia; and the Shops at Tanforan in San Bruno, California. JCPenney filed for chapter 11 bankruptcy in May of 2020, citing the Covid pandemic as a key reason for the move. At the time, the company was carrying $4 billion in debt. Things looked dire, but in December of 2020, JCPenney got a major save. Simon Property Group and Brookfield Asset Management acquired the company for $1.75 billion, giving it a chance to restructure its debt and potentially make a comeback. Another positive came in 2025 in the form of a merger. JCPenney announced in January that it would combine forces with Sparc Group to form a new company called Catalyst Brands. Other names under the same umbrella include Lucky Brand, Eddie Bauer, Aeropostale, and Nautica. The new company will be led by JCPenney CEO Marc Rosen out of its offices in Plano, Texas. "Catalyst Brands brings together the rich heritage of six unique brands with modern energy and a new vision for success. The word 'catalyst' reflects our drive to accelerate innovation and energy and amplify the impact of this powerhouse portfolio. Together, we bring scale, expertise and broad appeal to customers across America," Rosen said in a statement. So while JCPenney is still closing some locations this year, it doesn't necessarily spell disaster for the brand just yet. In fact, it's busy trying clever tactics to drum up new business. Its 2024 campaign "Really Big Deal Reveals," which aired during Amazon Prime Video's "Thursday Night Football" programming, offered exclusive deals for viewers promoted by celebrity names such as Martha Stewart and Shaquille O'Neal. Related: Macy's Borrows From Amazon's Playbook In Bid to Boost Online Sales The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
31-03-2025
- Business
- Yahoo
Hooters of America Takes Strategic Action to Continue its Iconic Legacy Under Pure Franchise Business Model
Enters into Restructuring Support Agreement to effectuate sale transaction to highly experienced franchisees Restaurants remain open, welcoming customers to enjoy its guest-obsessed hospitality and world-famous wings ATLANTA, March 31, 2025--(BUSINESS WIRE)--Hooters of America, LLC and certain of its affiliates (collectively "Hooters" or the "Company"), the original wing joint and a globally recognized iconic brand, today announced that it has entered into a Restructuring Support Agreement (the "RSA") with near unanimous support from its key stakeholders to effectuate a sale transaction that will facilitate the continued operation of the business under new ownership. Specifically, the Company has reached an agreement in principle with a highly experienced group of current franchisees (the "Buyer Group") to acquire and operate certain Company-owned Hooters locations. The Buyer Group is comprised of two existing Hooters franchisees (including Hooters Inc., the original Hooters founders), who collectively currently own and operate over 30% of the domestic franchised Hooters locations, including 14 of the 30 highest volume restaurants. In conjunction with the proposed sale of the Company-owned locations, and with the widespread support of key stakeholders in its capital structure (who will exchange certain of their debt for equity in the Company), the Company filed voluntary petitions for chapter 11 cases in the United States Bankruptcy Court for the Northern District of Texas (the "Court"). The Company expects to move through this process swiftly, with the goal of emerging from chapter 11 in approximately 90-120 days. "Our renowned Hooters restaurants are here to stay. Today's announcement marks an important milestone in our efforts to reinforce Hooters' financial foundation and continue delivering the guest-obsessed hospitality experience and delicious food our customers and communities have come to expect," said Sal Melilli, Chief Executive Officer of Hooters of America. "I've seen firsthand the incredible value and opportunities our brand brings to life, and I look forward to continuing that momentum well into the future. I'm incredibly grateful to our valued customers, partners, and employees for their continued support." Importantly, Hooters restaurants remain open to serve customers and will continue to operate in a business-as-usual manner during its chapter 11 cases. As part of the Company's broader business transformation and planning, Hooters is evaluating the Company's operational footprint as part of its financial restructuring process to position itself to invest its resources in its strongest assets moving forward. The Company's current franchise operations, including its locations outside the U.S., are not impacted by the chapter 11 process and will continue to be operated by the Company's franchise and license partners. "With over 30 years of hands-on experience across the Hooters ecosystem, we have a profound understanding of our customers and what it takes to not only meet, but consistently exceed their expectations," said Neil Kiefer, CEO of Hooters Inc., on behalf of the Buyer Group. "As we look toward the future, we are committed to restoring the Hooters brand back to its roots and simplifying HOA's operations by adopting a pure franchise model that will maximize the potential for sustainable, long-term growth. The foundation we've laid ensures the continued success of our brand – one that is driven by a relentless focus on delivering an exceptional experience each and every visit for our customers." Hooters is seeking relief through a number of customary "first day" motions with the Court to facilitate a smooth transition into chapter 11 and operate in the ordinary course, including through honoring commitments to employees, customers, licensee partners, and vendors. To fund Hooters' operations without disruption during the chapter 11 cases, the Company is seeking approval of $40 million of debtor-in-possession ("DIP") financing from certain of its existing lenders, including $35 million of new capital. Upon Court approval, Hooters anticipates the DIP financing will provide ample liquidity to support operations during the chapter 11 process. Upon completion of the chapter 11 process, all Hooters locations will be franchisee-owned. Hooters has launched a dedicated website for stakeholders to get information about the chapter 11 cases at Additional information regarding the chapter 11 process is available at Stakeholders with questions can contact the Company's claims agent, Kroll, by calling (888) 575-4910 (U.S. / Canada) or (646) 844-3894 (International) or emailing HootersInfo@ AdvisorsRopes & Gray LLP is serving as legal counsel, SOLIC Capital Advisors is serving as investment banker to the Company, Accordion Partners is serving as financial and restructuring advisor, and C Street Advisory Group is serving as strategic communications advisor. The Buyer Group is represented by North Point Mergers & Acquisitions and Morrison and Foerster is serving as their legal counsel. Sidley Austin LLP is serving as legal counsel and Houlihan Lokey is serving as investment banker to the prepetition term loan and DIP lenders. White & Case LLP is serving as legal counsel and M3 Partners, LP is serving as financial advisor to the Ad Hoc Group of Securitization Noteholders. About Hooters of America, LLCHooters of America, LLC, is the franchisor and operator of Hooters and Hoots Wings by Hooters. Known for its world-famous Hooters Style chicken wings, the first Hooters opened its doors in 1983 in Clearwater, Florida. Expectations were so modest at the time that the simple fact the doors opened was deemed worthy of a toast. Since then, millions have been liberated from the ordinary at Hooters while enjoying great food, fun and one-of-a-kind hospitality that can only be served up by the Hooters Girls. For more information about Hooters visit or follow us at or on Snapchat at "hooters." About Hooters Inc., founders of the Hooters concept, own and operate 22 Hooters Restaurants in Tampa Bay and Chicagoland and two Hoots locations in Chicagoland. For over 40 years, the Original Hooters group has been known for its World Famous Chicken Wings, fun atmosphere, and legendary service from the iconic Hooters Girls. For more information about Hooters Inc. please visit or follow them on Twitter @originalhooters, Instagram @originalhooters and Facebook View source version on Contacts C Street Advisory GroupHooters@
