Claire's Stores Inc. (Pembroke Pines, Fla.) finalized its merger with an affiliate of Apollo Management L.P. (Purchase, N.Y.) and named Eugene Kahn, formerly chairman and ceo of the May Department Store Co. (St. Louis), as ceo.
Claire's also announced that Mark Smith has rejoined the company as president and managing director of its European operations. Smith had co-founded one of the predecessors to Claire's U.K. business and led the European operations of Claire's from 1996 to 2002.
“The decision to sell Claire's to a private equity firm has been an emotional one, given our family's 30+ year involvement in building this company,” said Marla and Bonnie Schaefer, Claire's former co-chairmen and co- ceo's, in a joint statement. “After our board of directors engaged in a lengthy review of the company's strategic alternatives, we knew that this decision was the right one to make, both for the shareholders of Claire's and for the company as a whole. Now that we have worked with members of the Apollo team and Gene Kahn for several months, we are confident that under this new leadership team, Claire's will have the talent and resources it needs to reach new heights and further its objective of becoming the world's leading retailer of value priced costume jewelry and accessories to female tweens, teens and young adults.”
The deal, first announced in March, is worth approximately $3.1 billion.
Apollo's retail investments have included General Nutrition Centers, Zale Corp., AMC Entertainment, Ralphs Grocery Co., Dominick's Supermarkets, Rent-A-Center Inc. and Proffitt's Department Stores.