Claire’s went into Chapter 11 with $2 billion debt but has rebounded.
So, an IPO is not to be. Not just yet anyway.
Tween and teen girls accessories retailer Claire’s Holdings Inc. has withdrawn its initial public offering (IPO) application, according to a filing dated June 30.
In the filing, the retailer did not say what led to its decision to withdraw, saying only that “it has decided not to proceed with the offering at this time.”
Claire’s filed to go public in September 2021, about three years after it emerged from Chapter 11 bankruptcy, with a placeholder figure of $100 million.
Not that the decision is likely to derail a remarkably strong comeback from a company handed back to its investors in 2018.
Since then it has achieved a huge comeback and recently has focused its expansion plans on partnerships with other retailers, including notably department store group Macy’s and retail behemoth Walmart
WMT
Its products are now available in more than 2,500 Walmart stores and in over 360 Claire’s shop-in-shops at Walmart locations.
Claire’s, whose partnership with Walmart began in 2018, now sells its products through more than 30 retail partners in North America and Europe. In addition to Walmart, its partners include CVS, Amazon
AMZN
The young women’s fashion accessories company has more than 10 North American grocery partners, including Albertsons
ACI
Claire’s has canned its IPO but continues to expand rapidly.
In March the company announced a roll-out that would its range available in 500 stores at U.K. supermarket chain Asda.
There are more than 2,750 Claire’s owned and operated and franchise stores open across 17 markets across North America and Europe, along with 260 Icing doors.
Claire’s Drives Sales Through Partners
Claire’s said that it has found success driving weekly sales across both smaller displays at checkout and through a larger brand presence in-aisle, with seasonal boosts through festive products for holidays and celebrations remaining a standout sales strategy.
“Our successful consumer products partnership business has seen significant global growth, and our grocery partners are a key part of helping us harness the power of our brand,” said Ryan Vero, CEO of Claire’s since 2019.
In November last year, Claire’s first announced plans to team up with Macy’s to open shop-in-shop locations in more than 20 Macy’s locations nationwide.
And as it continues its growth plans, in late June of this year Claire’s Holdings appointed Claudia Lima-Guinehut as EVP and CMO, leading the company’s global merchandising, sourcing, and design strategy as well as its significant piercing business.
It is a far cry from when Claire’s previously filed for an IPO in 2013, only to withdraw the offering. The company filed for bankruptcy in 2018 nearly $2 billion in debt after a leveraged buyout in which private equity firm Apollo Management took it private.
Under its Chapter 11 provision the company managed to eliminate much of that debt burden and passed control to lenders including Elliott Capital Management and Monarch Alternative Capital.
