Claire's Stores Inc. has no plans of entering a company voluntary arrangement, an insolvency process that will allow the U.S. company to close some stores and negotiate rents in the U.K., London's City A.M. reported Oct. 15, citing CEO Ron Marshall.
Marshall reportedly denied reports that the apparel retailer is exploring options for a restructuring, adding that it has "no plans for either a CVA or major store closures in the UK in the foreseeable future."
"Any stores we do close or open in the UK would be as part of our normal course of business," Marshall told the newspaper.
The news follows Claire's announcement that its U.S. arm has emerged from bankruptcy after it completed its financial restructuring, which allowed the company to eliminate about $1.9 billion of debt and secure $575 million in new capital.
Claire's also said its third amended reorganization, which in September gained approval from the U.S. Bankruptcy Court for the District of Delaware, went into effect Oct. 12, marking its return from Chapter 11 protection.
"We committed at the beginning of this process that we would emerge as a healthier, more profitable company — and that is exactly what we have done," Marshall said in an SEC filing.