Ahead of filing, Claire's gave itself the best chance of exiting from bankruptcy by negotiating a plan with major lenders ahead of Chapter 11.
But just because a pre-negotiated bankruptcy plan is the smoothest path toward a successful retail reorganization doesn't mean everybody involved comes out ahead. Plenty of stakeholders — employees, landlords, vendors and lower-tier lenders among them — can get burned when a retailer restructures in Chapter 11.. . . more