Claire's Receives Court Approval for Amended Plan of Reorganization

HOFFMAN ESTATES, Ill., Sept. 21, 2018 /PRNewswire/ -- Claire's Stores, Inc. ("Claire's" or the "Company") today received approval for its Third Amended Plan of Reorganization (the "Plan") from the United States Bankruptcy Court for the District of Delaware. Having resolved all stakeholders' issues with respect to the Plan, the Company now expects to complete its balance sheet restructuring and successfully emerge from chapter 11 by early October.

Under the terms of the Plan, which is supported by all of the Company's major creditor groups and sponsored by an Ad Hoc Group of First Lien Creditors led by Elliott Management Corporation and Monarch Alternative Capital LP, the Company will eliminate approximately $1.9 billion of debt from its balance sheet and gain access to $575 million of additional capital.

"The Plan of Reorganization approved by the Court today gives Claire's the financial strength necessary to cement our position as one of the world's leading specialty retailers of fashionable jewelry, accessories and beauty products for young women, teens, tweens, and girls," said Chief Executive Officer Ron Marshall. "We have already seen year-over-year growth in same-store sales and are gaining significant traction in our newer concessions business. Our strengthened balance sheet will allow us to further the initiatives already underway, enhance our customer experience, and continue our positive growth trajectory. We are grateful to all of the customers, employees, partners, landlords, and lenders who helped us reach this important milestone and look forward to being a stronger partner and employer as a result of our restructuring efforts."

Claire's commenced its chapter 11 process on March 19, 2018, to undertake a balance sheet restructuring and eliminate a substantial portion of debt from its balance sheet to position its Claire's^® and Icing^® stores for long-term success. All businesses have continued to operate as usual throughout the restructuring.

Lazard Frères & Co. LLC is serving as investment banker to Claire's; FTI Consulting, Inc. is serving as restructuring advisor to Claire's; Hilco Real Estate, LLC is serving as real estate advisor to Claire's; and Weil, Gotshal & Manges LLP is serving as legal counsel to Claire's.

The Ad Hoc First Lien Group is represented by Willkie Farr & Gallagher LLP and Guggenheim Securities, LLC.

Court documents and additional information are available on the website administered by the Company's claims and noticing agent, Prime Clerk LLC, at https://cases.primeclerk.com/claires or may be obtained by calling the Claire's Restructuring Hotline, toll-free in the U.S., at (844) 276-3027. For calls originating outside of the U.S., please dial (917) 962-8890. 

About Claire's
Claire's Stores, Inc. is one of the world's leading specialty retailers of fashionable jewelry and accessories for young women, teens, tweens, and girls ages 3 to 35. The Company operates through its stores under two brand names: Claire's® and Icing®. As of August 4, 2018, Claire's Stores, Inc. operated 2,471 stores in 17 countries throughout North America and Europe, excluding 6,631 concession locations. The Company franchised 687 stores in 28 countries primarily located in the Middle East, Central and Southeast Asia and Central and South America, Southern Africa, and Russia. More information regarding Claire's Stores is available on the Company's corporate website at www.clairestores.com.

Cautionary Statements Regarding Forward-Looking Information
Certain statements in this press release constitute forward-looking statements. Such statements are not historical fact. Certain of these forward-looking statements can be identified by the use of words such as "believes," "anticipates," "expects," "intends," "plans," "projects," "estimates," "assumes," "may," "should," "could," "would," "shall," "will," "seeks," "targets," "future," or other similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties, and other important factors, and our actual results, performance, or achievements could differ materially from results, performance, or achievements expressed in these forward-looking statements. Such statements include, but are not limited to, statements relating to the court-supervised restructuring process, descriptions of management's strategy, plans, objectives, expectations, or intentions, including the ability to support the Company's operations during the restructuring process and descriptions of assumptions underlying any of the above matters and other statements that are not historical fact.

These forward-looking statements are based on the Company's current beliefs, intentions, and expectations and are not guarantees or indicative of future performance, nor should any conclusions be drawn or assumptions be made as to any potential outcome of any proposed transactions the Company considers. Risks and uncertainties relating to any capital restructuring initiative include: risks and uncertainties relating to the U.S. chapter 11 filings, including but not limited to, the Company's ability to obtain court approval with respect to motions in its chapter 11 cases, the effects of its chapter 11 cases on the Company and on the interests of various constituents, the ruling of the bankruptcy court in the Company's chapter 11 cases and the outcome of the Company's chapter 11 cases in general, the length of time the Company will operate under its chapter 11 cases, risks associated with third-party motions in its chapter 11 cases, the potential adverse effects of its chapter 11 cases on the Company's liquidity or results of operations or business prospects and increased legal and other professional costs necessary to execute the Company's reorganization; the potential adverse effects of the Company's chapter 11 cases on its liquidity; the transactions contemplated in the (DIP) financing commitments and RSA are subject to certain conditions, which conditions may not be satisfied for various reasons, including for reasons outside of the Company's control, including the negotiation of terms, conditions, and provisions of such financing; the ability of the Company to obtain requisite support for the restructuring from various stakeholders; the ability of the Company to continue as a going concern; the ability of the Company to execute any restructuring plan; and the effects of disruption from any restructuring making it more difficult to maintain business, financing, and operational relationships, to obtain and maintain normal terms with customers, suppliers, and service providers and to retain key executives and to maintain various licenses and approvals necessary for the Company to conduct its business.

The above factors, risks, and uncertainties are difficult to predict, contain uncertainties that may materially affect actual results, and may be beyond the Company's control. New factors, risks, and uncertainties emerge from time to time, and it is not possible for management to predict all such factors, risks, and uncertainties. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore any of these statements may prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the Company's objectives and plans will be achieved. These and other applicable risks, cautionary statements, and factors that could cause actual results to differ from the Company's forward-looking statements are included in the Company's filings with the SEC, specifically as described in the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2018 filed with the SEC on April 20, 2018.  These forward-looking statements speak only as of the date such statements were made or any earlier date indicated, and the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changes in underlying assumptions, or otherwise. If the Company were in any particular instance to update or correct a forward-looking statement, investors and others should not conclude that the Company would make additional updates or corrections thereafter.

Media Contacts:

Claire's Stores, Inc.
Hind Palmer
[email protected]
+44 (0) 7773-844670

Melanie Berry
[email protected]
+1 (847) 898-0120

Or

FTI Consulting
[email protected]
+1 (212) 850-5681

SOURCE Claire's Stores, Inc.

Related Links

http://www.clairestores.com