Like a phoenix from the ashes, teen clothing retailer Claire's has filed IPO paperwork nearly three years after filing Chapter 11 bankruptcy. The decision to go public comes after Claire's managed to double its sales year-over-year and swing back into the black after posting losses last year.
Claire's was taken over by Elliott Management and Monarch Alternative Capital in 2018 after it filed bankruptcy. These two firms helped Claire's turn things around and will rightfully hold substantial control and interest over the retailer once it goes public. After its IPO, Claire's will continue to operate its nearly 1,400 stores in North America and 900 stores in Europe. It also has hundreds of franchise stores in the Middle East and South Africa.
Why it matters
Claire's isn't the only underdog story this year. Mattress Firm and Guitar Center are two other former bankrupt retailers that filed their IPO paperwork last month. This indicates a positive shift in investor sentiment towards the retail sector after it was decimated by COVID-19.
