It plans to restructure nearly $2B in debt.
Hoffman Estates, IL-based Claire's Stores Inc., a retail chain selling fashion jewelry aimed at tweens and teens, has filed for Chapter 11 bankruptcy.
The company, which has suffered with declining mall traffic, plans to continue operating by restructuring about $1.9 billion of debt, Bloomberg reports.
The company said in a press release that it has reached a restructuring agreement with a group of creditors led by Elliott Management Corp. and Monarch Alternative Capital LP.
Claire's expects to complete the chapter 11 process in September. It would emerge with over $150 million of liquidity and reduce its overall indebtedness by about $1.9 billion, according to the release.
"We will complete this process as a healthier, more profitable company, which will position us to be an even stronger business partner for our suppliers, concessions partners, and franchisees," said Ron Marshall, CEO of Claire's.
Claire's made its filing in the U.S. Bankruptcy Court for the District of Delaware.
Read more at Bloomberg
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