Jewelry brand Alex and Ani has commenced Chapter 11 bankruptcy proceedings in order to undergo a comprehensive financial and operational restructuring. Additionally, the company will seek bids for its assets. The retailer plans to continue operating its currently open stores and website as usual during the court-supervised process.
The need to declare bankruptcy was blamed on COVID-19, which “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,” according to Alex and Ani Chief Restructuring Officer Robert Trabucco. The retailer plans to use this opportunity to “optimize its retail footprint, bolster the ecommerce platform and focus on strategic wholesale accounts.”
“We have worked diligently to overcome challenges with our capital structure, and we are very pleased with our progress from an operational efficiency standpoint,” said Trabucco in a statement.
The pace of pandemic-related bankruptcies has slowed in recent months, but the industry is still coming to terms with the toll of lockdowns. The most recent major retailers to seek restructuring were The Collected Group in April 2021 and Paper Source in March 2021. Paper Source was ultimately acquired by Barnes & Noble parent company Elliott Investment Management in May 2021.
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