Claire’s Stores – Court Declares Reorganization Plan Effective

October 12, 2018 – Claire’s Stores Third Amended Joint Chapter 11 Plan of Reorganization was declared effective [Docket No. 1079]. The Plan was previously confirmed by the Court on September 21, 2018 [Docket No. 1034]. In a press release announcing its exit from Chapter 11 the Company noted, “With support from its creditors and stakeholders, including an Ad Hoc Group of First Lien Creditors led by Elliott Management Corporation and Monarch Alternative Capital LP, who sponsored the Third Amended Plan, the Company has eliminated approximately $1.9 billion of debt from its balance sheet and gained access to $575 million in new capital.” Chief Executive Officer Ron Marshall added, “We committed at the beginning of this process that we would emerge as a healthier, more profitable Company – and that is exactly what we have done….Our renewed financial strength cements Claire’s position as one of the world’s leading specialty retailers of fashionable jewellery, accessories and beauty products for young women, teens, tweens and girls, and with our key growth initiatives already delivering value, we are well-positioned for long-term growth and success. We look forward to being a stronger partner and employer thanks to the support of all the customers, employees, partners, landlords, and lenders who worked with us during this process.”