EAST GREENWICH, R.I., June 10, 2021 /PRNewswire/ -- Alex and Ani, LLC ("Alex and Ani" or the "Company"), creators of the iconic charm bangle and affordable meaning based jewelry, today announced that in continuation of its efforts to stabilize its business, the Company has entered into a Restructuring Support Agreement ("RSA") with its debt holders and equity sponsors regarding a comprehensive financial and operational restructuring. To implement the restructuring, the Company has commenced Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware.
Alex and Ani intends to continue operating its currently open stores and its website as usual during the court-supervised process.
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.
Additional information, court filings and other documents related to the court-supervised process are available on a separate website administered by the Company's claims agent at https://www.kccllc.net/alexandani. Information is also available by calling (888) 733-1434 (toll-free in the U.S.) or (310) 751-2633 (for parties outside the U.S.) or by sending an email to [email protected].
Kirkland & Ellis LLP and Klehr Harrison Harvey Brazenburg LLP are serving as the Company's legal co-counsel and Portage Point Partners, LLC is serving as its financial advisor.