Accessories retailer Claire’s has confirmed its UK, European and Canadian businesses will not be affected by the bankruptcy filing of US parent company, Claire’s Stores Inc.
On Monday, the US company filed for a Chapter 11 bankruptcy protection for its US operations, due to be completed in September. It expects to emerge with over $150m (£107m) of liquidity, and reduce its overall debt by approximately $1.9bn (£1.3bn) as a result.
A spokeswoman for the retailer said: “It is business as usual in the UK, Europe and Canada. The restructure is financial, to reduce debt and is not an operational restructure. We expect to report strong EBITDA growth in FY2017 and are expecting to grow, not shrink, our business in 2018 by adding over 4000 concession stores.”
The accessories retailer had more than $1.4bn (£1.01bn) of debt due this year, the Chapter 11 bankruptcy protection allows it to keep trading whilst it restructures this. The company operates 7,500 stores worldwide.