Claire’s Misses Debt Payment as Lender Balks at Bond SwapBy
Retailer faces default if interest isn’t paid by Oct. 15
Chain posts quarterly loss, says credit lines are fully drawn
Claire’s Stores Inc. missed a bond payment deadline, leaving the troubled retailer owned by Apollo Global Management LLC 30 days to avert a default and possible bankruptcy.
The company missed $77 million of interest payments due Sept. 15 on some of its notes after one of Claire’s lenders declined to approve a bond exchange that makes up a key part of the chain’s turnaround plan, according to a regulatory filing. The company has a 30-day grace period to come up with the payment. Claire’s also needs the European lender’s consent to get cash “to fund its near-term debt service and other obligations,” the retailer said…
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