Connect with us


Alex and Ani Files Ch. 11 Bankruptcy

It’s entered into a restructuring agreement with debt holders and equity sponsors.




EAST GREENWICH, RI — Alex and Ani LLC has begun Chapter 11 bankruptcy proceedings in an effort to stabilize its business.

The company said in a press release that it has entered into a restructuring agreement with its debt holders and equity sponsors.

Alex and Ani intends to continue operating its currently open stores and website as usual during the court-supervised process. It made the Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware.

The company holds 74 leases, and about a third of its stores remain closed due to the pandemic, Bloomberg reports. It has more than 500 full- and part-time employees.

In its filing, Alex and Ani listed assets of between $100 million and $500 million and liabilities in the same range, according to Bloomberg.

The company was founded by Carolyn Rafaelian in 2004. Lion Capital took a controlling stake in Alex and Ani in 2019 and Rafaelian was eventually pushed out as CEO of the company.


More from the press release:

Contemporaneously with the Chapter 11 filing, the Company commenced a marketing process, pursuant to which parties will have the opportunity to submit competing bids for the purchase of the Company’s assets. At the same time, the Company’s lenders and equity sponsors have agreed to the terms of a comprehensive standalone restructuring that will serve to ensure go-forward operations remain intact.

“We have worked diligently to overcome challenges with our capital structure, and we are very pleased with our progress from an operational efficiency standpoint,” said Alex and Ani’s Chief Restructuring Officer, Robert Trabucco. “In 2020, COVID-19 forced the company to pause its key strategic growth initiatives, temporarily close stores and scale back its operations in light of reduced in-store customer demand. During that time, Alex and Ani continued to invest in its eCommerce platform,” said Mr. Trabucco.

Alex and Ani has taken significant steps toward financial health through realignment of sales channels, reducing retail footprint, and reductions in capital expenditures and working capital. During the restructuring process, the company will continue to have the financial resources to purchase the goods and services necessary to fulfill customer’s needs while continuing to offer the high-quality products, service, and support that has become a hallmark of the brand.

“After a thorough review of a number of available options, the Board determined that a Chapter 11 filing is in the best interests of all parties, including our valued customers and employees.”

Mr. Trabucco also emphasized that there will be little to no disruption in day-to-day business and operations as a result of the Chapter 11 filing. “Our employees will continue to be paid as usual during this process. The Company will look to optimize its retail footprint, bolster the eCommerce platform, and focus on strategic wholesale accounts,” he said.

“This process and proposed transaction is positive news for our employees, our customers, and our suppliers. Alex and Ani will have enhanced access to the financial resources with an optimized capital structure necessary to continue to prosper and grow. By utilizing the Chapter 11 process, we are able to ensure an expedited and orderly right-sizing of our balance sheet and operations,” Mr. Trabucco concluded.




When the Kids Have Their Own Careers, Wilkerson Can Help You to Retire

Alex and Gladys Rysman are the third generation to run Romm Jewelers in Brockton, Mass. And after many decades of service to the industry and their community, it was time to close the store and take advantage of some downtime. With three grown children who each had their own careers outside of the industry, they decided to call Wilkerson. Then, the Rysmans did what every jeweler should do: They called other retailers and asked about their own Wilkerson experience. “They all told us what a great experience it was and that’s what made us go with Wilkerson.” says Gladys Rysman. The results? Alex Rysman says he was impressed. “We exceeded whatever I expected to do by a large margin.”

Promoted Headlines

Most Popular