March 28, 2018
Weil is representing Hoffman Estates, Illinois-based Claire’s Stores, Inc. and certain of its domestic affiliates (the Company) in their chapter 11 cases, which were recently commenced in the United States Bankruptcy Court for the District of Delaware. The Company, including its non-debtor affiliates, is one of the world’s leading specialty retailers of fashionable jewelry, accessories
, and beauty products for young women, teens, “tweens,” and kids, and operates a combination of over 7,500 Company-operated stores, concessions locations, and franchised stores through its two global brands, Claire’s® and Icing.® Claire’s balance sheet includes approximately $2.2 billion, including indebtedness of certain non-debtor affiliates.
As part of its chapter 11 filing, Weil advised the Company on its entry into a $135 million debtor-in-possession credit facility. Additionally, Weil advised the Company in connection with the negotiation and execution of a restructuring support agreement (RSA) with an ad hoc group of creditors (the Ad Hoc First Lien Group) led by Elliott Management Corporation and Monarch Alternative Capital LP. Members of the Ad Hoc First Lien Group include holders of approximately 72% of the Company’s first lien debt, 8% of its second lien debt, and 83% of its unsecured notes. Pursuant to the transactions contemplated by the RSA, members of the Ad Hoc First Lien Group have agreed to provide the Company with approximately $575 million of new capital, including financing commitments for a new $75 million asset-based lending facility, a new $250 million first lien term loan, and $250 million as a preferred equity investment. Claire’s expects to complete its chapter 11 process in or around September 2018.
The Weil team representing Claire’s is led by Business Finance & Restructuring Department Co-Chairs, Ray C. Schrock, P.C. and Matt S. Barr, and partner Ryan Preston Dahl (Not Yet Admitted in New York). The team also includes Global Finance head Daniel S. Dokos and Banking & Finance partner Benton Lewis; Capital Markets partner Frank Adams; Public Company Advisory Group partner Adé Heyliger; Litigation partner Paul Genender; Mergers & Acquisitions partners Michael Lubowitz and Gavin Westerman; Tax partners Stuart Goldring and Mark Hoenig; Executive Compensation & Benefits Head Paul Wessel; Real Estate Co-Head J. Philip Rosen; Business Finance & Restructuring associates Danielle D. Donovan, Alexander Welch (Not Yet Admitted in New York), David Li, Kyle R. Satterfield, Katherine Lewis, Eli Blechman (Not Yet Admitted in New York), Matthew Skrzynski and Angeline Hwang; Banking & Finance associates Sasha Shulzhenko, Anna McEwen (Not Yet Admitted in New York), H.T. Flanagan, and Jeremy Jenkins (Not Yet Admitted in New York); Capital Markets associates Janeane Ferrari and Daniel Evens; Public Company Advisory Group associate, Niral Shah; Litigation associates Olivia Miller and Jake Rutherford; Mergers & Acquisition associates Mariel Cruz, Maria Lei and Grace Ly (Not Yet Admitted in California); Tax associates Joseph Reich and Elisabeth Allison (Not Yet Admitted in New York); and Executive Compensation & Benefits associate John Kleinjan.