A new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
Claire’s Seeks New Loans Amid Continuous Financial Slide
The debt-saddled costume jewelry retailer wants to refinance its debt to buy time to turn business around ahead of 2017 loan repayment.
Hoffman Estates, Ill.--Claire’s Stores Inc., the shopping mall fixture, mass-market fashion jewelry retailer, has announced that it wants to refinance its debt, some of which is due as early as next year, in a bid to buy time to turn around its struggling business.
Claire’s wants to exchange almost $800 million of securities due 2017, 2019 and 2020 for up to $230 million of new loans at an interest rate of 9 percent, it said in a news release. The new loans would mature in 2021.
Bondholders have until Sept. 10 to accept the exchange offer.
The news comes in the wake of the announcement that CFO J. Per Brodin will resign Sept. 2.
In May, Claire’s reported a 5 percent decrease in same-store sales and a 6 percent decrease in total sales in the first quarter, which has been consistent with the sales slide that has steamrolled the retailer since 2007, the same year it incurred $2.3 billion in debt from a leveraged buyout by Apollo Global Management.
In June, Bloomberg reported that Apollo was buying Claire’s bonds due in 2017, as the retailer faces approximately $370 million in debt maturity next year. Bloomberg predicted refinancing late last year.
Claire’s has credited a weak dollar, store closures, a decrease in same-store sales and a decrease in shipments to franchises as the reasons behind the latest financial results.
Poor mall traffic has been a challenge for retailers across industries in recent years as shopping increasingly moves to the internet and competition increases. Candace Corlett, president of WSL Strategic Retail, told Bloomberg in December that children’s tastes are also evolving as they prioritize experience-related purchases.
Corlett said, “Kids’ spending money is going to their electronics, buying their music, eating out with their friends.”
In 2014, Claire’s began shifting its focus from traditional brick-and-mortar locations to store-within-a-stores in locations like Toys “R” Us.
As of press time, Claire’s could not be reached for comment.
Claire’s describes itself as a fashion jewelry and accessory retailers catering to girls and women between ages 3 and 35. As of April this year, it had 2,831 retail locations in 17 countries, plus 579 franchise locations in 29 countries.
The Latest
Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
The move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
From now through mid-May, GIA will be offering the reports at a 50 percent discount.
De Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Sponsored by the Las Vegas Antique Jewelry & Watch Show
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
The Patek Philippe expert will serve as personal curator for the brand-focused company.
The 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
NDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
B&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
It’s ultra-feminine and filled with gold, pearls, and soft pastels.
Emily Highet Morgan and Emily Bennett have joined the agency’s team.
Its updated book for mountings is also now available.
She has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
Joyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
He is remembered by loved ones for his loyalty, integrity, and kindness.
Hosted by Freeman’s | Hindman, the sale will take place May 7-8.
The auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
From cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
The charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Ahead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Members can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.