(Reuters) - Accessories retailer Claire’s Stores Inc, owned by Apollo Global Management LLC, said it was in advanced talks with a lender to allow its debt exchange program to proceed and release much-needed cash.
The retailer said the lender related to its Europe credit facility waived declaring a default related to its fixed charge cover ratio covenant, according to a regulatory filing.
The company also received a waiver under its U.S. credit agreement, according to the filing.
Claire’s, which was taken private in 2007 by Apollo in a leveraged buyout valued at about $3.1 billion, missed a $77 million interest payment last week.
The company said it was continuing to pay employees, suppliers and trade creditors. (bit.ly/2cZpw8u)
The retailer, known for its affordable jewelry and ear piercing services, has seen losses widen while its debt load has swollen to $2.5 billion, as more people shop online and take their teen and pre-teen girls to malls less frequently.
Reporting by Narottam Medhora in Bengaluru