Image Source: Alex and Ani
Alex and Ani LLC, a Rhode Island-based jewelery retailer, Chapter 11 Bankruptcy Protection And it was put up for sale.
The company said Thursday that it had signed a restructuring support agreement (RSA) with debtors and equity sponsors as it worked to restructure and strengthen its online and retail businesses.
During a process underway through the US Bankruptcy Court in the Delaware district, Alex and Ani said they would continue to operate their stores and websites as usual.
In a statement, Chief Restructuring Officer Robert Trabucco said, “By using the process in Chapter 11, we can ensure a quick, orderly and proper sizing of our balance sheet and operations.” I will.
“This process and the proposed deals are positive news for our employees, customers and suppliers. Alex and Ani are financially funded by the optimized capital structure they need to continue to prosper and grow. Enhance access. “
Launched by Carolyn Rafaelian in 2004, Alex and Ani is known for its bangles, charm bracelets and necklaces and is based in the United States, Aruba and Panama.
Within a few years of starting the business, Rafaelian expanded to 1,000 employees, opened more than 100 stores and produced more than 10 million bracelets annually.Rafa Elian Get off Lion Capital, a UK private equity fund, took over as Chief Executive Officer in 2019 after increasing its stake in the company.
In the submission of Chapter 11 of Alex and Ani, Trabucco stated that rapid growth had made the company struggle.To catch up with demandHe also addressed “significant” management turnover, surplus inventory, “heavy” leasing, and inventory management issues.
“We have been working hard to overcome the challenges of the capital structure and are very pleased with the progress in terms of operational efficiency,” he said Thursday.
“In 2020, COVID-19 was forced to suspend the company’s major strategic growth initiatives, temporarily close stores and shrink its business in light of reduced in-store customer demand. Meanwhile, Alex and Ani continued to invest in e-commerce platforms, “said Trabucco.
According to Bloomberg News, the company’s estimated assets ranged from $ 100 million to $ 500 million, similar to estimated liabilities. The largest unsecured creditors are the mall owners Simon Property Group and Brookfield Property Partners, each paying more than $ 3 million in rent.
According to Bloomberg, the chain currently employs approximately 530 part-time and full-time employees in 74 stores, of which approximately one-third are closed due to the COVID-19 pandemic.
Source: Equity news