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NEW: Alex and Ani Joins Extended Checklist of Trend Manufacturers in Filing for Chapter 11

Thursday, June 10, 2021

 

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Alex and Ani, the organization that revolutionized bangle jewellery in The usa extra than a 10 years ago could not escape the monetary impacts of the pandemic.

The Rhode Island jewelry company joins some of the major names in fashion and retail who have filed for bankruptcy defense whilst they restructured.

The checklist incorporates Brooks Brothers, Ann Taylor, Lord & Taylor, Men’s Wearhouse and Jos. A. Lender, Roberto Cavalli, Diesel and so lots of extra.

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In its announcement, Alex and Ani mentioned that in its efforts to stabilize its organization, the Enterprise has entered into a Restructuring Support Agreement (“RSA”) with its debt holders and fairness sponsors pertaining to a detailed economic and operational restructuring. To implement the restructuring, the Enterprise has commenced Chapter 11 proceedings in the United States Bankruptcy Courtroom for the District of Delaware. 

Founder Carolyn Rafaelian still left the operation of the enterprise about a year in the past and has because released a new jewellery firm.

Alex and Ani intend to continue on working its presently open retailers and its web site as usual all through the court-supervised process. 

The company has been just one of Rhode Island’s terrific successes. It produced a national fashion pattern and catapulted from a little jewellery producer to upwards of $400 million in profits about about a 5-12 months period of time. But, in trend what goes up, should come down.

 

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In Rhode Island — Business Expects to Sustain Operations

The firm tells GoLocal that the headquarters, as effectively as distribution and manufacturing, will keep on being in East Greenwich.

“We have an understanding of the critical part we play in the local economy. We have been in enterprise in this article for nearly 20 several years, and within just that time we have served build a significant community of gifted and committed suppliers and craftsmen. I would emphasize that we count on there to be minor to no disruption in operations right here in our dwelling state. As we navigate the restructuring approach, our workforce in the course of the headquarters office and distribution heart will continue with no interruption. By utilizing the Chapter 11 system, are setting up a clear route forward, and solidifying a healthier and strong long term,” claimed Kate Robinson EVP, Brand name Technique for Alex and Ani.

According to the announcement, contemporaneously with the Chapter 11 submitting, Alex and Ani commenced a advertising and marketing procedure, seeking consumers who will have the option to post competing bids for the invest in of the assets. 

At the identical time, stockholders have agreed to the phrases of a thorough standalone restructuring that will provide to guarantee go-forward operations keep on being intact.

“We have labored diligently to triumph over difficulties with our funds construction, and we are very delighted with our development from an operational performance standpoint,” mentioned Alex and Ani’s Chief Restructuring Officer, Robert Trabucco. 

“In 2020, COVID-19 forced the firm to pause its key strategic progress initiatives, temporarily near suppliers and scale back its operations in light of diminished in-retail store customer demand from customers. Through that time, Alex and Ani continued to devote in its eCommerce platform,” said Trabucco.

Alex and Ani has taken major techniques towards economic wellbeing through realignment of sales channels, cutting down retail footprint, and reductions in money expenditures and doing work capital. In the course of the restructuring system, the corporation will proceed to have the monetary means to purchase the merchandise and services required to satisfy customer’s demands whilst continuing to offer the substantial-good quality service and guidance that has grow to be a hallmark of the manufacturer. 

“Soon after a complete evaluate of a number of accessible solutions, the Board decided that a Chapter 11 filing is in the best interests of all parties, which includes our valued customers and workforce,” he stated. 

Trabucco also emphasized that there will be little to no disruption in day-to-working day enterprise and functions as a outcome of the Chapter 11 submitting. “Our workers will go on to be paid as standard all through this course of action. The Organization will look to improve its retail footprint, bolster the eCommerce system, and aim on strategic wholesale accounts,” he reported.

“This approach and proposed transaction is constructive information for our personnel, our consumers, and our suppliers.  Alex and Ani will have enhanced entry to the money resources with an optimized capital framework vital to keep on to prosper and grow.  By making use of the Chapter 11 system, we are able to ensure an expedited and orderly correct-sizing of our stability sheet and operations,” Trabucco additional.

Kirkland & Ellis LLP and Klehr Harrison Harvey Brazenburg LLP are serving as the Company’s lawful co-counsel and Portage Stage Partners, LLC is serving as its investment banker and financial advisory.

Editor’s Take note: This story was current at 8:03 AM

 

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