Jan 17, 2017
U.S. jeweler Claire's abandons plan to go public
Jan 17, 2017
Claire's Inc, known for its affordable jewelry and ear piercing services, said it was withdrawing its plans to go public, more than three years after filing for an initial public offering.
The company, which was taken private by Apollo Global Management LLC for about $3.1 billion in 2007, had sought to raise $100 million when it filed for its IPO in May 2013.
Claire's was not immediately available to comment on the reasons for pulling the IPO.
Last week, upscale retailer Neiman Marcus Group LLC also filed to withdraw its offering.
Reuters had exclusively reported that Claire's had decided to start negotiations with its creditors about restructuring its debt in July last year as it saw its loss widen and its debt load swell to $2.4 billion.
The Hoffman Estates, Illinois-based company missed a $77 million interest payment in September and received a waiver under its U.S. credit agreement amid debt exchange talks with a lender, according to a filing.
At least eight teen apparel retailers have filed for bankruptcy over the past three years, including Aeropostale Inc, Pacific Sunwear of California and Wet Seal Inc, amid fierce competition from online retailers such as Amazon.com Inc and a general shift away from shopping for apparel and accessories.
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