Troubled retailer Claire’s stores Inc. has hired Lazard as its investment banker to help it reduce debt. “Lazard’s engagement is not related to operations, which remain strong,” the company said in a statement. Same-store sales rose 2.7% in the first three quarters of 2017 and adjusted EBITDA — defined as earnings before income taxes, net interest expense, depreciation and amortization, loss (gain) on early debt extinguishments, and asset impairments — has grown 18.3%. “The steps we are taking now with Lazard will help to ensure Claire’s long-term success for years to come,” Chief Executive Ron Marshall said in the statement. “We believe this is the right time to undertake this initiative and we want to assure our vendors, employees and stakeholders that we believe we have ample liquidity to honor our commitments through the completion of this process.” Claire’s has $2.2 billion of long-term debt, according to FactSet, most of it taken on when the company was bought out by Apollo Global Management for $3.1 billion in a 2007 LBO.
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