March 19, 2018 / 9:49 AM / a year ago

Accessories retailer Claire's Stores files for bankruptcy

March 19 (Reuters) - Claire’s Stores Inc said on Monday it filed for Chapter 11 bankruptcy protection and expects to reduce debt by about $1.9 billion, as the struggling retailer of girls’ accessories combats a fall in mall traffic.

Claire’s said it reached an agreement with creditors including Elliott Management Corp and Monarch Alternative Capital LP, which will provide it with about $575 million in new capital.

Claire’s expects to complete the Chapter 11 process in September.

The retailer’s international subsidiaries are not part of the U.S. bankruptcy filings, Claire’s said in a statement.

Claire’s is owned by private equity firm Apollo Global Management LLC, which acquired it in 2007 for $3.1 billion. (Reporting by Tamara Mathias in Bengaluru; Editing by Gopakumar Warrier)

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