Alex and Ani, the Rhode Island-based retailer which reached huge popularity among young women a decade ago with its inexpensive bangles and charm bracelets promoting spirituality and good vibes, has filed for has filed for Chapter 11 bankruptcy protection.
The company has faced poor sales, lawsuits and internal conflicts, according to the Providence Journal. Executives said they will work with creditors and restructure during the bankruptcy proceedings.
“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,” Robert Trabucco, Alex and Ani’s chief restructuring officer, said in a statement. “By utilizing the Chapter 11 process, we are able to ensure an expedited and orderly right-sizing of our balance sheet and operations.”
The company, controlled by British private equity firm Lion Capital, listed between $100 million and $500 million in debt to hundreds of creditors, and assets of about the same value, according to the filing in U.S. Bankruptcy Court in Delaware.
Last November, a judge ordered Alex and Ani founder Carolyn Rafaelian to pay $5 million to Lion Capital, which acquired the retailer in 2019, to make good on a past due promissory note, the Journal reported. According to court documents from 2020, Rafaelian at that point no longer controlled the company.
During a presentation at Ecommerce Operations Summit in 2014, the company’s former director of operations said Alex and Ani saw revenue spike from $2 million in 2009 to over $80 million in 2012 during its heyday, with new products offered each month.