Alex and Ani, creators of the charm bangle and other jewelry, entered into a restructuring support agreement with its debt holders and equity sponsors regarding a comprehensive financial and operational restructuring. To implement the restructuring, the company commenced Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware.
In connection with the Chapter 11 filing, Portage Point Partners is serving as Alex and Ani’s financial advisor, while Kirkland & Ellis and Klehr Harrison Harvey Brazenburg are serving as the company’s legal co-counsel.
Alex and Ani intends to continue operating its currently open stores and its website as usual during the court-supervised process. Contemporaneously with the Chapter 11 filing, Alex and Ani commenced a marketing process, pursuant to which parties will have the opportunity to submit competing bids for the purchase of the company’s assets. At the same time, the company’s lenders and equity sponsors agreed to the terms of a standalone restructuring that will serve to ensure go-forward operations remain intact.
“We have worked diligently to overcome challenges with our capital structure, and we are very pleased with our progress from an operational efficiency standpoint,” Robert Trabucco, chief restructuring officer of Alex and Ani, said. “In 2020, COVID-19 forced the company to pause its key strategic growth initiatives, temporarily close stores and scale back its operations in light of reduced in-store customer demand. During that time, Alex and Ani continued to invest in its e-commerce platform,”
During the restructuring process, Alex and Ani expects to have the financial resources to purchase the goods and services necessary to fulfill customer’s needs while continuing to offer its products, services and support to customers.
“After a thorough review of a number of available options, the board determined that a Chapter 11 filing is in the best interests of all parties, including our valued customers and employees,” Trabucco said.
Trabucco also emphasized there will be little to no disruption in day-to-day business and operations as a result of the Chapter 11 filing.
“Our employees will continue to be paid as usual during this process. The company will look to optimize its retail footprint, bolster the e-commerce platform and focus on strategic wholesale accounts,” Trabucco said. “This process and proposed transaction is positive news for our employees, our customers and our suppliers. Alex and Ani will have enhanced access to the financial resources with an optimized capital structure necessary to continue to prosper and grow. By utilizing the Chapter 11 process, we are able to ensure an expedited and orderly right-sizing of our balance sheet and operations,”
