Bankruptcy / Closurehigh2018
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Claire's
Retail & Consumer ยท owned by Apollo Global Management
Claire's filed bankruptcy under $2.5B in Apollo debt despite being operationally viable
Apollo loaded ~$2.5B in LBO debt onto a teen jewelry retailer that was otherwise profitable. Interest payments crushed the business. Filed Chapter 11 in March 2018. 17,000+ workers affected. Emerged diminished.
Debt vs revenue
Before
Profitable retailer
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After
$2.5B debt, bankruptcy
Change
-100%
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