Alex and Ani’s bankruptcy plan is accepted – JCK

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On September 22, a Delaware judge approved Alex and Ani’s Chapter 11 reorganization, wiping out much of the company’s previous debt.

The plan called for Lion Capital to buy back debt formerly owed to a consortium of banks. So in the future, the London-based investment fund will own 65% of the company, an increase from its 59% stake before the bankruptcy.

The remaining 35%, formerly controlled by company founder Carolyn Rafaelian, was sold to Bathing Club LLC, which is owned by famous lawyer and cable TV mainstay Mark Geragos, who previously served as legal counsel to Alex. and Ani.

The best-selling boutique company first filed Chapter 11 in June, citing the brick-and-mortar retail pivot and organizational upheaval. The bankruptcy plan called for Alex and Ani to go up for sale, but an auction scheduled for September 7 was canceled when no qualified offer has been received.

Of the society initial advice will consist of five people. Three will be appointed by Lion Capital: fund partners Lyndon Lea and Sherif Guirgis, as well as former Pandora chief executive Scott Burger, who has chaired Alex and Ani’s board of directors since last year. Also on the board will be Geragos and Lawrence Meyer, the only independent director on the board. Meyer is the former CEO of casual wear company Uniqlo and was also a board member of Charming Charlie, another jewelry company that applied for Chapter 11.

The restructuring plan includes dispute settlements with Rafaelian and former senior vice president of operations David Medeiros. The settlement says Rafaelian will resign from the company’s board of directors, but is now free to start a new jewelry business.

The restructuring plan “[will] capitalize 100% of the funded debt obligations of accounts receivable, provide significant cash collections to future commercial suppliers and secure $ 4.5 million in new capital to fund distributions under the plan and future capital needs, ”a said the director of restructuring and interim CEO. Robert Trabucco in a deposit.

Trabucco, former chief financial officer of Signet, took over the company last year after Rafaelian resigned. It is not known if he will stay with the company. He did not return a request for comment at the time of posting.

The company’s bankruptcy papers can be seen here.

(Photo courtesy of Alex and Ani)

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