September 19, 2016 / 10:06 PM / 3 years ago

Claire's Stores gets waiver amid debt exchange talks

(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. (

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

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