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NEW: Alex and Ani Joins Long List of Fashion Brands in Filing for Chapter 11

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Thursday, June 10, 2021

 

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Alex and Ani, the corporate that revolutionized bangle jewellery in America greater than a decade in the past couldn’t escape the monetary impacts of the pandemic.

The Rhode Island jewellery firm joins some of the largest names in style and retail who’ve filed for chapter safety whereas they restructured.

The record contains Brooks Brothers, Ann Taylor, Lord & Taylor, Males’s Wearhouse and Jos. A. Financial institution, Roberto Cavalli, Diesel and so many extra.

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In its announcement, Alex and Ani stated that in continuation of its efforts to stabilize its enterprise, it has entered right into a Restructuring Assist Settlement (“RSA”) with its debt holders and fairness sponsors, Lion Capital and Carolyn Rafaelian, concerning a complete monetary and operational restructuring. To implement the restructuring, the Firm has commenced Chapter 11 proceedings in america Chapter Courtroom for the District of Delaware. 

Rafaelian left the operation of the corporate a few 12 months in the past and has since launched a new jewelry company.

Alex and Ani intend to proceed working its at present open shops and its web site as common in the course of the court-supervised course of. 

The corporate has been one of Rhode Island’s nice successes. It created a nationwide style pattern and catapulted from a small jewellery producer to upwards of $400 million in gross sales over a few five-year interval. However, in style what goes up, should come down.

 

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In Rhode Island — Firm Expects to Maintain Operations

The corporate tells GoLocal that the headquarters, in addition to distribution and manufacturing, will stay in East Greenwich.

“We perceive the essential function we play in the native economic system. We’ve got been in enterprise right here for virtually 20 years, and inside that point we’ve got helped set up a big community of proficient and devoted suppliers and craftsmen. I might emphasize that we anticipate there to be little to no disruption in operations right here in our residence state. As we navigate the restructuring course of, our staff all through the headquarters workplace and distribution heart will proceed with out interruption. By using the Chapter 11 course of, are establishing a clear path ahead, and solidifying a wholesome and sturdy future,” stated Kate Robinson EVP, Model Technique for Alex and Ani.

In accordance with the announcement, contemporaneously with the Chapter 11 submitting, Alex and Ani commenced a advertising and marketing course of, searching for patrons who can have the chance to submit competing bids for the acquisition of the property. 

On the similar time, stockholders have agreed to the phrases of a complete standalone restructuring that can serve to make sure go-forward operations stay intact.

“We’ve got labored diligently to beat challenges with our capital construction, and we’re very happy with our progress from an operational effectivity standpoint,” stated Alex and Ani’s Chief Restructuring Officer, Robert Trabucco. 

“In 2020, COVID-19 compelled the corporate to pause its key strategic progress initiatives, briefly shut shops and cut back its operations in gentle of decreased in-store buyer demand. Throughout that point, Alex and Ani continued to speculate in its eCommerce platform,” stated Trabucco.

Alex and Ani has taken vital steps towards monetary well being via realignment of gross sales channels, lowering retail footprint, and reductions in capital expenditures and working capital. Throughout the restructuring course of, the corporate will proceed to have the monetary sources to buy the products and companies essential to satisfy buyer’s wants whereas persevering with to supply the high-quality service and assist that has develop into an indicator of the model. 

“After an intensive overview of a quantity of obtainable choices, the Board decided {that a} Chapter 11 submitting is in the perfect pursuits of all events, together with our valued clients and staff,” he stated. 

Trabucco additionally emphasised that there can be little to no disruption in day-to-day enterprise and operations in consequence of the Chapter 11 submitting. “Our staff will proceed to be paid as common throughout this course of. The Firm will look to optimize its retail footprint, bolster the eCommerce platform, and give attention to strategic wholesale accounts,” he stated.

“This course of and proposed transaction is constructive information for our staff, our clients, and our suppliers.  Alex and Ani can have enhanced entry to the monetary sources with an optimized capital construction essential to proceed to prosper and develop.  By using the Chapter 11 course of, we’re ready to make sure an expedited and orderly right-sizing of our steadiness sheet and operations,” Trabucco added.

Kirkland & Ellis LLP and Klehr Harrison Harvey Brazenburg LLP are serving because the Firm’s authorized co-counsel and Portage Level Companions, LLC is serving as its funding banker and monetary advisory.

 

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