The necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
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
The two organizations will host a joint event, “Converge,” in September 2025.
Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
The Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
The announcement came as the company reported a 23 percent drop in production in Q1.
The three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
Inspired by the Roman goddess of love, the designer looked to the sea for her new collection.
The selected nine organizations have outlined their plans for the funds.
The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
Emmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
Ruser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
The “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
The overhaul includes a new logo and enhanced digital marketplace.
The money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
A new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
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.
From now through mid-May, GIA will be offering the reports at a 50 percent discount.