Inside Licensing News and Notes, March 20, 2018
Claire’s Stores Files for Chapter 11
Claire’s Stores Inc., burdened by heavy debt and slow mall store traffic, filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court, Wilmington, DE. The company, founded in 1961, was taken private in 2007 in a $3.1 billion leveraged buyout led by the private equity firm Apollo Global Management.
Top unsecured creditor by far is the Bank of New York Mellon ($221.5 million). Top trade creditors are cellphone grip supplier Popsockets ($1.85 million), Ty Inc. ($1.72 million), MGA Entertainment ($598,136), WowWee Group ($248,488), Enesco ($220,428) and Jakks Pacific ($219,000).
Claire’s had $212 million of earnings before interest, taxes, depreciation and amortization, but $2.1 billion of debt, $1.4 billion of which was to mature in early 2019, according to court documents. Claire’s secured $135 million in financing from a group led by Citibank North America that will fund the business through bankruptcy, the chain said. The creditors have agreed to provide Clair’s with $575 million of new capital, including a $250 million first-lien term loan.
In addition to Claire’s stores, the company also operates fashion accessories retailer Icing. It has more than 3,000 stores in 36 countries, including more than 1,900 in the U.S., 95% of which are in malls, the company has said.
Contact:
Claire’s Stores, Scott Huckins, Chief Financial Officer, 847-765-1100
Alpha Group Named Master Toy Licensee for Peppa Pig in China
Alpha Group signed as the Peppa Pig master toy licensee for China, replacing King Bee with plans for developing products specifically for the Chinese markets, says Entertainment One’s Andrew Carley. King Bee previously sourced product for China through Character Options, says Carley. “The focus in the medium and long term is to develop a line that specifically meets the consumer expectations in China,” Carley told us. China “differs from the rest of the world in terms of price, product functions and market size.” Alpha Group is part of Guangdong Alpha Animation and Culture Co.
Contact:
Alpha Group, Cai Dongqing, Pres., +86 20 3898 3278
Entertainment One, Andrew Carley, Head of Global Licensing, +44 20 7907 3797, acarley@entonegroup.com
