Private Equity-owned Companies in Times Square 

1385 Broadway

Private equity owner: Apollo Management

Owned by private equity since: 2007

Deal value: $3.1 Billion

Employees: 18,500

The hottest accessory in the buyout world these days seems to be large chunks of debt. The Apollo Management takeover of accessory store chain Claire’s was no different, with the New York-based private equity firm financing 80% of the $3.1 billion buyout in March 2007 with loans. Previously debt-free, the post-buyout Claire’s faces $2.5 billion in debt, leading observers to wonder what restructuring or other changes may be necessary to pay it all off. Of more urgent concern for Apollo and the management of Claire’s at the moment however, may be the seven different shareholder lawsuits filed in response to the deal. The suits allege “breach of fiduciary duty,” a fancy term meaning average shareholders may have not gotten their money’s worth. At issue are potential conflicts of interest involving Claire’s executives. Additional conflicts on the deal could involve frequent Apollo advisor Goldman Sachs. Claire’s implores its “tween” girl clientele to “Be Golden,” but better advice during the deal might have been to “be Goldman” – the Wall Street giant received an $18 million fee for recommending the Apollo buyout to shareholders over a richer offer from Apax Partners. One employee reported that store managers start at $9.75 an hour, hardly enough to finance a fully accessorized wardrobe.