Store chain Claire’s is allegedly preparing to shut down in the next few weeks. Following that, the current owner, Apollo Global Management would give the company to several debtors.
2 billion dollar debt
According to Bloomberg, Claire’s currently faces a 2 billion dollar (1.6 billion euro) debt and i needs to pay 60 million dollars (50 million euro) back early this week. However, chances are that Claire’s will actually file for bankruptcy and then quickly relaunch. Several debtors will acquire the company and gain control. Apollo, its current owner, paid 3.1 billion dollars (2.3 billion euro) in 2007 to acquire Claire’s, but will have to relinquish command.
Apollo focused on a rapid Claire’s expansion and opened another 350 stores between 2010 and 2013. The chain currently has more than 2,700 stores, with the majority located in shopping centers. However, these attract increasingly fewer customers, which obviously impacted turnover.
In an attempt to increase its turnover, it signed a deal with supermarket chain Giant Eagle and CVS, to have its product range available there as well. Chances are that a lot of stores will shut down after the bankruptcy however. The chain has about one hundred stores in the Benelux.