Discount jewelry chain Claire’s has reorganized after filing for Chapter 11 bankruptcy in March, eliminating a huge chunk of its debt and getting a lifeline of cash.
The store, known for its ear-piercing program and popularity with teens, said Monday that it had emerged from bankruptcy by eliminated $1.9 billion of debt while getting $575 million in new capital.
“We committed at the beginning of this process that we would emerge as a healthier, more profitable Company – and that is exactly what we have done,” said CEO Ron Marshall.
Part of the company’s restructuring involved eliminating stores. At the time of its bankruptcy filing, Claire’s had 7,500 locations in 45 countries. But as of Aug. 4, Claire’s had cut the number to 2,471 stores in 17 countries in North America and Europe, excluding 6,631 concessions locations.
The company pared back by franchising 687 of its stores to operators in 28 countries, primarily in the Middle East, Central and Southeast Asia, Central and South America, Southern Africa, and Russia.