American Teenage Fashion Accessories Claire 'S Debt Is On The Verge Of Bankruptcy.

According to insiders, American teenagers

Accessories retailer Claire 's Stores Inc (hereinafter referred to as Claire' s) recently decided to negotiate with creditors to avoid falling into bankruptcy protection.

At present, Claire 's and its controlling shareholder private equity fund Apollo Global Management LLC (hereinafter referred to as Apollo) have not responded to this.

It is reported that Claire "s" sells jewelry, ear studs and other accessories at the selling price.

Famous.

But in recent years, more and more youngsters are choosing.

Things, stores, shops.

As a result, the loss problem faced by the company is becoming more and more serious, with debts totaling up to US $2 billion 400 million.

The struggling teenager fashion retailer is far more than the Claire s company. In the past two years, at least 8 such traditional fashion retailers have been under the pressure of competition, and sales have stagnated and finally chose bankruptcy protection.

These include: Aeropostale Inc, Pacific Sunwear of California and The Wet Seal Inc.

In order to cut costs, Claire 's closed more than 150 stores last year. As of the end of April this year, the brand operated 2831 Direct stores in Europe and the United States, with annual sales revenue of about 14 billion.

In 2007, Apollo leveraged Claire 's, which traded at about $3 billion 100 million.

At present, Apollo has already reduced some of Claire's s debt.

According to the regulatory documents of the stock exchange, Apollo bought the bonds of Claire 's due in 2017, and then replaced the new bonds in 5 month with the same maturity due next year.

In June, Moody (s), a credit rating agency, pointed out that Apollo's debt replacement of up to 1.75 billion is actually "debt discount" because Claire 's is unable to fully repay the debt interest per quarter in June.

In May, Claire s hired Ron Marshall as a new member of the board of directors of the company, Marshall Marshall was experienced in dealing with such troubled companies, and worked as CEO before many retailers filed for bankruptcy protection.

Michael D 'Appolonia, the original director of DeNovo Perspectives LLC, an enterprise pformation consultant, joined the board of directors in June.

It is reported that Apollo has hired law firm Morgan, Lewis & Bockius LLP on behalf of Claire s to start negotiations with creditors.