Claire's Stores gets waiver amid debt exchange talks

Accessories retailer Claire's Stores Inc, owned by Apollo Global Management LLC, said it was in advanced talks with a lender to allow its debt exchange program to proceed and release much-needed cash.

The retailer said the lender related to its Europe credit facility waived declaring a default related to its fixed charge cover ratio covenant, according to a regulatory filing.

The company also received a waiver under its U.S. credit agreement, according to the filing.

Claire's, which was taken private in 2007 by Apollo in a leveraged buyout valued at about $3.1 billion, missed a $77 million interest payment last week.

The company said it was continuing to pay employees, suppliers and trade creditors. The retailer, known for its affordable jewelry and ear piercing services, has seen losses widen while its debt load has swollen to $2.5 billion, as more people shop online and take their teen and pre-teen girls to malls less frequently.