Charm Bracelet Empire Alex and Ani Files for Bankruptcy Protection
June 13, 21
(IDEX online) – Alex and Ani, the American start-up that has grown into a billion dollar empire on sales of spiritual and charm bracelets, has filed for bankruptcy (Chapter 11).
The global pandemic has sealed its fate after payment defaults, declining sales, lawsuits, internal disputes and months of disruption caused by a ransomware virus.
The company was founded in 2004 by Carolyn Rafaelian, who named it after her two daughters. It was largely inspired by his New Age beliefs, and each piece of jewelry has been blessed by a shaman.
Rafaelian was ranked 18th richest self-made woman in the United States by Forbes in 2017, with a net worth of over $ 1 billion.
Alex and Ani, along with a number of related entities, filed a Chapter 11 case in Delaware bankruptcy court last Wednesday.
“In 2020, COVID-19 forced the company to suspend its major strategic growth initiatives, temporarily close stores and scale back operations in light of reduced in-store customer demand,” said Robert Trabucco , director of restructuring for Alex and Ani, in a statement. declaration.
“By using the process in Chapter 11, we are able to ensure rapid and orderly sizing of our balance sheet and operations.”
Photo courtesy of Alex and Ani