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Claire’s deep debt may force them into Chapter 11 bankruptcy

(BUSINESS NEWS) Millennial nostalgia reaches peak levels as decades-old jewelry store Claire’s declares bankruptcy.

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Poor, sweet Claire’s. The place I got my ears pierced in fifth grade along with countless other tweens over the years. Where nearly all my accessories from age nine to 19 were purchased.

The place I swore to stop shopping because apparently my skin is allergic to every material they use. Looks like losing me as a customer has had a huge impact, because Claire’s is filing for bankruptcy.

Formerly the go-to haven for all things sparkly, cheap, and sold in multipacks, the fashion accessory chain is now suffering the same fate as many other mall-based retailers.

Although inexpensive accessories remain popular, mall foot traffic has slowed significantly enough that Clarie’s and other retailers are suffering from crushing debt.

Claire’s current debt load is $2 billion, with a $60 million interest payment due March 13 of this year. More pressure is added with $1.4 million due to mature next year as well. Their debt load is over 10 times a key measure of their annual earnings.

Filing a Chapter 11 bankruptcy means the decades-old store can remain open while a more formal plan for turnaround is established.

The chain has been around since the early 1970s after a merger. Longtime Claire’s owner Rowland Schaeffer founded Fashion Tress Industries in 1961, which at the time was a worldwide leader in fashion wigs.

By 1973, Schaeffer acquired jewelry chain Claire’s, and renamed the merged companies Claire’s Fashion Accessories. For several decades, the Schaeffer family ran the business, with Rowland’s daughters eventually taking over.

In 2007, Apollo Global Management LLC acquired the business from the Schaeffer family for $3.1 billion. From 2010 to 2013, the company added an additional 350 stores, and had over 2,700 stores globally.

Although the takeover was successful in terms of adding stores, it also added a huge debt to Claire’s, from which it has not been able to recover.

Early in 2017, the company withdrew their initial public offering and continued struggling despite operating over 3,000 stores worldwide.

As part of the Chapter 11 agreement, business control will pass from Apollo Global Management LLC to other lenders.

To stay afloat, they plan on selling merchandise in CVS Pharmacies and Giant Eagle supermarkets in hopes of reaching customers outside of the standard mall habitat Claire’s previously occupied.

So while Claire’s isn’t dead quite yet, you may want to stock up on BFF necklaces and 20-pair earring sets while you still have the chance.

Lindsay is an editor for The American Genius with a Communication Studies degree and English minor from Southwestern University. Lindsay is interested in social interactions across and through various media, particularly television, and will gladly hyper-analyze cartoons and comics with anyone, cats included.

Business News

How to work with someone who’s a never-ending stress mess

(OPINION EDITORIAL) Working with, or around, people who seem to always be carrying stress can be detrimental to your health and theirs, here’s how to deal with them.

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My baseline level of anxiety is pretty high. I get stressed out if I forget to pack a fork in my lunch even though there are utensils at the office. If someone is mean to me, I get on edge. If I make a small mistake I’m probably going to carry it with me for a few hours.

Others may not exhibit stress unless they’re up against a tight deadline or coming from a difficult meeting, but it seems like they’re always inclined towards stress regardless of their schedules. While many people exhibit stress in understandable, fleeting situations, for some stress is a default setting. It can be difficult to work with someone who’s always stressed out.

When someone is perpetually stressed, it takes a toll on everyone else too. That energy can be toxic and leave you wondering if you should be helping or if your colleague is intentionally being a Debbie Downer.

For starters, don’t make a judgement call about your coworker. Everyone handles stress at different levels, and for some people that means not really handling stress at all.

You may be able to breeze through your day with minor frustrations while others are thrown off by the smallest thing.

Holly Weeks, author of Failure to Communicate, notes “Don’t think what can I do to change this person?” Instead, she suggests considering how to neutralizes the situation and move forward.

If you want to offer the most basic form of help, acknowledge what’s going on and offer a compliment. Even if it doesn’t seem like much is going on, simply letting your stressed colleague feel heard and appreciated can make an impact.

Author of How to Have a Good Day, Caroline Webb, explains stressed people are “feeling out of control, incompetent, and disrespected. A compliment is your easy way to help them get back to their better self.” Make sure you’re not enabling them by dragging out the situation, though.

Acknowledge, offer some praise, and try to move with the conversation.

Although it’s not necessarily in your job description to fix your coworkers problems, you can still offer support. You may not actually be able to do anything, but offering assistance gives the other person a chance to think through solutions.

Webb also suggests brainstorming way to “reduce their cognitive load,” to ease what’s making your coworker feel overwhelmed.

Some simple solutions include splitting requests into smaller steps, shortening emails, or dividing work into parts.

Ultimately the job needs to get done, but you can provide your coworker with more manageable means of accomplishing tasks by breaking things into chunks.

You can also check in on your coworker to find out if you should be concerned, or if their stress limited to the work environment. If their stress is beyond what you can reasonably handle with these de-escalation tips, don’t hesitate to reach out to someone about further steps to take.

Check out our mental health series for some more insight if you’re concerned your coworker’s problem may be more than regular stress.

Just like some people are easily stressed, some easily pick up on the negative feelings of others. Be aware of how your coworker’s stress is affecting you. If someone is truly draining you, try to get some distance.

While that may be difficult in a small office, Weeks recommends keeping in mind that out of all the “office characters…the stress case’s temperament [is] less of a problem” than others.

Ultimately, it’s not your responsibility to destress your coworker, but you can certainly make your work life a little easier if you take these steps to make for healthier, happier collaboration.

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Company offers extra vacation days to nonsmoker employees

(BUSINESS NEWS) A Japanese marketing company offers extra vacation days for nonsmoker employees who don’t utilize smoke breaks – sound good to you?

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Anyone who knows me will tell you that I’m a huge fan of “The Office” (I mean, who isn’t?) I spend a lot of time reflecting on the awesomeness of that show and the situations that characters go through at Dunder Mifflin.

One thing that always stuck with me was a scene where Kelly is talking about how she will take up smoking in order to get the 15 minute breaks throughout the day. This statement made me think about how odd it was that smokers got breaks throughout the day while nonsmokers stay inside, maybe taking a water cooler break.

Being from Chicago, I always thought the concept of smoke breaks was crazy, anyway. I remember visiting my dad at work as a kid and seeing people standing in the freezing cold, smoking outside of his building. I don’t know if you’ve ever been to Chicago in the middle of January, but having to spend 15 extra minutes in that weather would be enough to make me stop smoking, cold turkey (pun intended).

All of these memories about the weirdness of smoke breaks came back today when I learned about Piala Inc., a Japanese marketing firm, and their new plan to give non-smokers six extra vacation days a year.

The policy was introduced in 2016 after employees complained about colleagues receiving multiple smoke breaks throughout the day. Since its implementation, 30 employees have taken advantage of the extra vacation days.

“One of our non-smoking staff put a message in the company suggestion box earlier in the year saying that smoking breaks were causing problems,” company spokesman, Hirotaka Matsushima, told The Telegraph. “Our CEO saw the comment and agreed, so we are giving non-smokers some extra time off to compensate.”

This is a great incentive for companies to offer employees. Not only in terms of equality, but would also be beneficial for a company’s health and wellness program.

While I’ve never fallen under the spell of nicotine, I would like to think that I’d prefer six extra days off compared to the habit of smoking. Apparently others are starting to feel this way as the company has reported that it has helped at least four people to stop smoking.

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Top tips for keeping remote workers engaged, connected

(BUSINESS NEWS) Do you manage remote employees or an entirely mixed team? These tips will keep you on the right track to avoid communication breakdown.

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Not every workplace has all its employees in the same place. Different office locations, business trips, and freelancers mean your workforce may be geographically scattered. So how do you effectively communicate from home base if your team is remote and widespread?

First things first – invest in the best virtual meeting platform technology you can work into your budget. If you can’t all be in one place, the next best thing is regularly scheduled virtual meetings. Everyone should have a camera so employees get a chance to know who they’re talking to and put names to faces.

Sure, you may not want to see yourself on camera, but your coworkers will appreciate seeing who they’ve been collaborating with and emailing.

If video conferences aren’t relevant to your business, make sure employees at least have some way to get in touch with each other, like Slack, Skype, or even a private Facebook group. Have at least one platform where employees can engage, communicate, and share information with each other.

Foster connection among employees, allowing them to engage and build work relationships. Provide opportunities for non-work related connections to show your employees you know they’re people, not just workers.

If possible, organize small group outings for those in the same city. Even if that’s not feasible, you can still be the connector that brings people together remotely.

Create “water cooler” moments by calling out important events, like birthdays, marriages, or someone completing an important goal. Get to know your employees, and engage in small talk whenever possible to get to know them. This shows your employees you value them and care about their lives.

Sending care packages can go a long way to show your employees you want them to feel included. Is your next meeting being catered at the main office? Order something for your remote employees too. Everyone deserves bagels.

Make sure you also set clear communication expectations about when you can and can’t be reached. Virtual employees need to know when they can expect a response from you and their colleagues since informal interactions are hard to come by remotely.

When managing remote employees, strive for inclusiveness. Be a connector who promotes engagement by knowing your employees, giving them an avenue to communicate with you and each other.

Take time to get to know your employees on at least a semi- personal level, and ensure everyone feels welcomed even if they’re working remotely. This will lead to better coworker relationships, employee retention, and performance.

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