Claires Stores 10-Q 19 Sep 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 30, 2016	Sep. 01, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Trading Symbol	CLE
Entity Registrant Name	CLAIRES STORES INC
Entity Central Index Key	34,115
Current Fiscal Year End Date	--01-30
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		100

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016
Current assets:
Cash and cash equivalents	$ 75,272	$ 18,871
Inventories	153,614	151,954
Prepaid expenses	17,904	15,676
Other current assets	24,676	26,254
Total current assets	271,466	212,755
Property and equipment:
Furniture, fixtures and equipment	243,940	245,954
Leasehold improvements	308,220	310,021
Total property and equipment, gross	552,160	555,975
Accumulated depreciation and amortization	(395,236)	(383,334)
Total property and equipment, net	156,924	172,641
Leased property under capital lease:
Land and building	18,055	18,055
Accumulated depreciation and amortization	(5,862)	(5,416)
Total leased property under capital lease	12,193	12,639
Goodwill	1,301,922	1,301,922
Intangible assets, net of accumulated amortization of $77,961 and $74,683, respectively	469,141	470,227
Other assets	45,980	43,371
Total other noncurrent assets	1,817,043	1,815,520
Total assets	2,257,626	2,213,555
Current liabilities:
Revolving credit facilities	158,367	41,059
Current portion of long-term debt	268,157
Trade accounts payable	67,339	73,133
Income taxes payable	4,335	6,165
Accrued interest payable	68,263	67,984
Accrued expenses and other current liabilities	77,259	85,225
Total current liabilities	643,720	273,566
Long-term debt	2,094,410	2,351,072
Obligation under capital lease	16,557	16,712
Deferred tax liability	102,989	103,309
Deferred rent expense	35,001	36,144
Unfavorable lease obligations and other long-term liabilities	11,701	12,996
Total Non current liabilities	2,260,658	2,520,233
Commitments and contingencies
Stockholder's deficit:
Common stock par value $0.001 per share; authorized 1,000 shares; issued and outstanding 100 shares	0	0
Additional paid-in capital	618,828	618,831
Accumulated other comprehensive loss, net of tax	(44,909)	(49,239)
Accumulated deficit	(1,220,671)	(1,149,836)
Total stockholder's deficit	(646,752)	(580,244)
Total liabilities and stockholder's deficit	$ 2,257,626	$ 2,213,555

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016
Accumulated amortization on intangible assets	$ 77,961	$ 74,683
Common stock, par value	$ 0.001	$ 0.001
Common stock, share authorized	1,000	1,000
Common stock, share issued	100	100
Common stock, share outstanding	100	100

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Net sales	$ 317,172	$ 347,587	$ 616,819	$ 667,582
Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below)	170,683	179,076	329,036	351,928
Gross profit	146,489	168,511	287,783	315,654
Other expenses:
Selling, general and administrative	112,372	116,369	220,094	229,387
Depreciation and amortization	13,796	15,634	27,856	30,188
Severance and transaction-related costs	125	420	1,698	827
Other income, net	(4,538)	(2,606)	(1,593)	(2,466)
Total other expenses	121,755	129,817	248,055	257,936
Operating income	24,734	38,694	39,728	57,718
Interest expense, net	55,623	55,044	110,702	109,464
Loss before income tax (benefit) expense	(30,889)	(16,350)	(70,974)	(51,746)
Income tax (benefit) expense	1,188	2,519	(139)	2,541
Net income (loss)	(32,077)	(18,869)	(70,835)	(54,287)
Other comprehensive income (loss):
Foreign currency translation adjustments	(2,340)	(516)	520	(601)
Net gain (loss) on intra-entity foreign currency transactions, net of tax expense (benefit) of $209, $(108), $735 and $(372)	(6,385)	(3,547)	3,810	(2,998)
Other comprehensive income (loss)	(8,725)	(4,063)	4,330	(3,599)
Comprehensive loss	$ (40,802)	$ (22,932)	$ (66,505)	$ (57,886)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Tax related to net gain (loss) on intra-entity foreign currency transactions	$ 209	$ (108)	$ 735	$ (372)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
Cash flows from operating activities:
Net loss	$ (70,835)	$ (54,287)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	27,856	30,188
Amortization of lease rights and other assets	1,371	1,551
Amortization of debt issuance costs	4,222	4,084
Accretion of debt premium	(1,339)	(1,229)
Non-cash in kind interest expense	9,156
Net unfavorable accretion of lease obligations	(126)	(189)
Loss on sale/retirement of property and equipment, net	170	248
Gain on sale of intangible assets/lease rights		(1,596)
Stock-based compensation benefit	(3)	(561)
(Increase) decrease in:
Inventories	(1,143)	(25,667)
Prepaid expenses	(3,051)	(1,536)
Other assets	(281)	(4,488)
Increase (decrease) in:
Trade accounts payable	(5,988)	11,513
Income taxes payable	(41)	1,809
Accrued interest payable	284	76
Accrued expenses and other liabilities	(11,997)	(5,514)
Deferred income taxes	(545)	(134)
Deferred rent expense	(1,213)	2,932
Net cash provided by (used in) operating activities	(53,503)	(42,800)
Cash flows from investing activities:
Acquisition of property and equipment	(8,523)	(14,379)
Acquisition of intangible assets/lease rights	(103)	(127)
Proceeds from sale of intangible assets/lease rights		1,736
Net cash used in investing activities	(8,626)	(12,770)
Cash flows from financing activities:
Proceeds from revolving credit facilities	120,618	250,198
Payments on revolving credit facilities		(138,898)
Payment of debt issuance costs	(79)	(82)
Principal payments on capital lease	(116)	(81)
Net cash provided by (used in) financing activities	120,423	111,137
Effect of foreign currency exchange rate changes on cash and cash equivalents	(1,893)	(326)
Net increase in cash and cash equivalents	56,401	55,241
Cash and cash equivalents, at beginning of period	18,871	27,386
Cash and cash equivalents, at end of period	75,272	82,627
Restricted cash, at end of period		336
Cash and cash equivalents and restricted cash, at end of period	75,272	82,963
Supplemental disclosure of cash flow information:
Interest paid	98,316	106,452
Income taxes paid	$ 658	735
Non-cash investing activities
Restricted cash received in escrow (bank)		$ (1,693)

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 30, 2016
Basis of Presentation	1. Basis of Presentation The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the results for the interim periods presented have been included. These statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Annual Report on Form 10-K for the year ended January 30, 2016 filed with the Securities and Exchange Commission, including Note 2 to the Consolidated Financial Statements included therein, which discusses principles of consolidation and summary of significant accounting policies. The Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures regarding contingent assets and liabilities and reported amounts of revenues and expenses. Such estimates include, but are not limited to, the value of inventories, goodwill, intangible assets and other long-lived assets, legal contingencies and assumptions used in the calculation of income taxes, stock-based compensation, residual values and other items. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity, foreign currency, and energy markets and declines in consumer spending have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates will be reflected in the financial statements in those future periods when the changes occur. Due to the seasonal nature of the retail industry and the Company’s business, the results of operations for interim periods of the year are not necessarily indicative of the results of operations on an annualized basis.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jul. 30, 2016
Recent Accounting Pronouncements	2. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20), Recognition of Breakage for Certain Prepaid Stored-Value Products In March 2016, FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Deferral of the Effective Date

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 30, 2016
Fair Value Measurements	3. Fair Value Measurements ASC 820, Fair Value Measurement Disclosures, Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company does not have any assets (liabilities) measured at fair value on a recurring basis. Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis The Company’s non-financial assets, which include goodwill, intangible assets, and long-lived tangible assets, are not adjusted to fair value on a recurring basis. Fair value measures of non-financial assets are primarily used in the impairment analysis of these assets. Any resulting asset impairment would require that the non-financial asset be recorded at its fair value. The Company reviews goodwill and indefinite-lived intangible assets for impairment annually, during the fourth quarter of each fiscal year, or as circumstances indicate the possibility of impairment. The Company monitors the carrying value of definite-lived intangible assets and long-lived tangible assets for impairment whenever events or changes in circumstances indicate its carrying amount may not be recoverable. Financial Instruments Not Measured at Fair Value The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, current liabilities, long-term debt and revolving credit facilities. Cash and cash equivalents, accounts receivable and current liabilities approximate fair market value due to the relatively short maturity of these financial instruments. The Company considers all investments with a maturity of three months or less when acquired to be cash equivalents. The Company’s cash equivalent instruments are valued using quoted market prices and are primarily U.S. Treasury securities. The revolving credit facilities approximate fair value due to the variable component of the interest rate. Excluding unamortized debt issuance costs, the estimated fair value of the Company’s long-term debt (including current portion) was approximately $1.03 billion as of July 30, 2016, compared to a carrying value of $2.38 billion at that date. Excluding unamortized debt issuance costs, the estimated fair value of the Company’s long-term debt was approximately $1.04 billion as of January 30, 2016, compared to a carrying value of $2.37 billion at that date. For publicly-traded debt, the fair value (estimated market value) is based on quoted market prices in less active markets. For non-publicly traded debt, fair value is estimated based on quoted prices for similar instruments. If measured at fair value in the financial statements, long-term debt would be classified as Level 2 in the fair value hierarchy.

Debt

Debt	6 Months Ended
	Jul. 30, 2016
Debt	4. Debt Debt as of July 30, 2016 and January 30, 2016 included the following components (in thousands): July 30, 2016 January 30, 2016 U.S. senior secured revolving credit facility due 2017 $ 110,200 $ 42,200 Europe unsecured revolving credit facility due 2017 49,339 — Unamortized debt issuance cost (1,172 ) (1,141 ) Total revolving credit facilities $ 158,367 $ 41,059 Current portion of long-term debt: 10.5% Senior subordinated notes due 2017 $ 85,212 $ — 10.5% PIK Senior subordinated notes due 2017 183,556 — Unamortized debt issuance cost (611 ) — Total current portion of long-term debt $ 268,157 $ — Long-term debt: 10.5% Senior subordinated notes due 2017 $ — $ 259,612 9.0% Senior secured first lien notes due 2019 (1) 1,133,015 1,134,354 8.875% Senior secured second lien notes due 2019 450,000 450,000 6.125% Senior secured first lien notes due 2020 210,000 210,000 7.75% Senior notes due 2020 320,000 320,000 Unamortized debt issuance cost (18,605 ) (22,894 ) Total long-term debt $ 2,094,410 $ 2,351,072 Obligation under capital lease (including current portion) $ 16,839 $ 16,954 (1) Amount includes unamortized premium of $8,015 and $9,354 as of July 30, 2016 and January 30, 2016, respectively. 10.5% PIK Senior Subordinated Notes On May 4, 2016, the Company entered into two exchange agreements with certain funds managed by affiliates of Apollo Global Management, LLC (the “Apollo Funds”), pursuant to which the Company exchanged (i) $174.4 million aggregate principal amount of its 10.5% Senior Subordinated Notes due 2017 (the “Existing Subordinated Notes”) held by the Apollo Funds, for (ii) $174.4 million aggregate principal amount of its newly-issued 10.5% PIK Senior Subordinated Notes due 2017 (the “New PIK Subordinated Notes”). The Existing Subordinated Notes had been acquired by the Apollo Funds in open market transactions. The Company has caused all $174.4 million aggregate principal amount of the acquired Existing Subordinated Notes to be cancelled. The Apollo Funds are the indirect controlling shareholders of the Company. The terms of the New PIK Subordinated Notes are substantially the same as those of the Existing Subordinated Notes except that interest, which accrues at 10.5% per annum from December 1, 2015, will be paid-in-kind (“PIK”) with respect to the June 1, 2016 interest payment and may be PIK, paid in cash or paid 50% cash/50% PIK with respect to the December 1, 2016 interest payment. Interest on the New PIK Subordinated Notes and the Existing Subordinated Notes is payable semi-annually in June and December. The New PIK Subordinated Notes and the Existing Subordinated Notes will mature June 1, 2017. On June 1, 2016, the Company issued an additional $9.2 million aggregate principal amount of New PIK Subordinated Notes in payment of interest due June 1, 2016. The New PIK Subordinated Notes rank pari passu with the Existing Subordinated Notes, and both series are subordinated to all senior indebtedness of the Company and the Guarantors. See Note 9 –Related Party Transactions. U.S. Revolving Credit Facility and Note Covenants The Amended and Restated Credit Agreement with respect to the Company’s senior secured revolving credit facility due 2017, as amended (the “U.S. Credit Facility”) in the amount of $115 million and our 10.5% Senior Subordinated Notes due 2017 (the “Senior Subordinated Notes”), 8.875% Senior Secured Second Lien Notes due 2019 (the “Senior Secured Second Lien Notes”), 9.0% Senior Secured First Lien Notes due 2019 (the “9.0% Senior Secured First Lien Notes”), 6.125% Senior Secured First Lien Notes due 2020 (the “6.125% Senior Secured First Lien Notes”), 7.75% Senior Notes due 2020 (the “7.75% Senior Notes”) and the New PIK Subordinated Notes (collectively, the “Notes”) contain certain covenants that, among other things, subject to certain exceptions and other basket amounts, restrict our ability and the ability of our subsidiaries to: • incur additional indebtedness; • pay dividends or distributions on our capital stock, repurchase or retire our capital stock and redeem, repurchase or defease any subordinated indebtedness; • make certain investments; • create or incur certain liens; • create restrictions on the payment of dividends or other distributions to us from our subsidiaries; • transfer or sell assets; • engage in certain transactions with our affiliates; and • merge or consolidate with other companies or transfer all or substantially all of our assets. Certain of these covenants in the indentures governing the Notes, such as limitations on the Company’s ability to make certain payments such as dividends, or incur debt, will no longer apply if the Notes have investment grade ratings from both of the rating agencies of Moody’s Investor Services, Inc. (“Moody’s”) and Standard & Poor’s Ratings Group (“S&P”) and no event of default has occurred. Since the date of issuance of the Notes, the Notes have not received investment grade ratings from Moody’s or S&P. Accordingly, all of the covenants under the Notes currently apply to the Company. The U.S. Credit Facility also contains customary provisions relating to mandatory prepayments, voluntary payments, affirmative and negative covenants, and events of default. In addition, so long as the revolving loans and letters of credit outstanding exceed $15.0 million, the Company is required to maintain, at each borrowing date measured at the end of the prior fiscal quarter (but reflecting borrowings and repayments under the U.S. Credit Facility through the measurement date) and at the end of each quarter, a maximum Total Net Secured Leverage Ratio based upon the ratio of its net senior secured first lien debt to adjusted earnings before interest, taxes, depreciation and amortization for the period of four consecutive fiscal quarters most recently ended. Effective September 10, 2015, the Company amended the provisions in its U.S. Credit Facility to increase the maximum Total Net Secured Leverage Ratio. Commencing with the third quarter of Fiscal 2015, the maximum ratio is 6.75:1.0 for all quarters through the end of Fiscal 2016 except the fourth quarters of Fiscal 2015 and Fiscal 2016 when the ratio will be 6.35:1.0. See Note 12- Subsequent Events for discussion of a waiver and an amendment to the U.S. Credit Facility. Europe Revolving Credit Facility Certain of the Company’s European subsidiaries are parties to an unsecured multi-currency revolving credit facility, dated October 2, 2014, as amended on July 15, 2015 (as amended, the “Europe Credit Facility”) in the amount of $50 million that will terminate on August 20, 2017. Loans under the Europe Credit Facility bear interest at 2.50% per annum plus the Euro Interbank Offered Rate as in effect for interest periods of one, three or six months or any other period agreed upon. The Europe Credit Facility also provides for a facility fee of 0.875% per annum on the unused amount of the facility. All obligations under the Europe Credit Facility are unconditionally and fully guaranteed by Claire’s (Gibraltar) Holdings Limited (“Claire’s Gibraltar”) and certain of its existing direct or indirect wholly-owned European subsidiaries, subject to certain exceptions and limitations. The Europe Credit Facility contains customary affirmative and negative covenants applicable to Claire’s Gibraltar and its subsidiaries, events of default and provisions relating to mandatory and voluntary payments, which include an annual requirement that for at least five successive Business Days in each year no loans under the Europe Credit Facility may be outstanding. The Europe Credit Facility also contains covenants that require Claire’s Gibraltar to maintain particular financial ratios so long as any amounts are outstanding under the facility: a Fixed Charge Cover Ratio not lower than 1.5:1.0 based upon the ratio of adjusted earnings before interest, taxes, depreciation, amortization, and rent to net interest and rent for each period of four consecutive fiscal quarters and a Leverage Ratio not more than 1.5:1.0 based upon the ratio of net debt to adjusted earnings before interest, taxes, depreciation and amortization for each period of four consecutive fiscal quarters. See Note 12- Subsequent Events for discussion of a waiver to the Europe Credit Facility. Europe Bank Credit Facilities Our non-U.S. subsidiaries have bank credit facilities totaling $2.3 million. These facilities are used for working capital requirements, letters of credit and various guarantees. These credit facilities have been arranged in accordance with customary lending practices in their respective countries of operation. As of July 30, 2016, we had a reduction of $2.1 million for outstanding bank guarantees, which reduces the borrowing availability to $0.2 million as of that date. See Note 3 – Fair Value Measurements for related fair value disclosure on debt.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 30, 2016
Commitments and Contingencies	5. Commitments and Contingencies The Company is, from time to time, involved in litigation incidental to the conduct of its business, including personal injury litigation, litigation regarding merchandise sold, including product and safety concerns regarding heavy metal and chemical content in merchandise, litigation with respect to various employment matters, including litigation with present and former employees, wage and hour litigation and litigation regarding intellectual property rights. The Company believes that current pending litigation will not have a material adverse effect on its consolidated financial position, results of operations or cash flows.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jul. 30, 2016
Accumulated Other Comprehensive Income (Loss)	6. Accumulated Other Comprehensive Income (Loss) The following summary sets forth the components of accumulated other comprehensive income (loss), net of tax as follows (in thousands, net of tax): Foreign Derivative Total Balance as of January 30, 2016 $ (54,971 ) $ 5,732 $ (49,239 ) Other comprehensive income 4,330 — 4,330 Balance as of July 30, 2016 $ (50,641 ) $ 5,732 $ (44,909 )

Stock Options and Stock-Based C

Stock Options and Stock-Based Compensation	6 Months Ended
	Jul. 30, 2016
Stock Options and Stock-Based Compensation	7. Stock Options and Stock-Based Compensation The following is a summary of activity in the Company’s stock option plan for the six months ended July 30, 2016: Weighted- Weighted- Average Average Remaining Number of Exercise Contractual Shares Price Term (Years) Outstanding as of January 30, 2016 3,710,022 $ 9.43 Options granted 1,085,500 $ 1.26 Options exercised — Options forfeited (897,135 ) $ 9.07 Options expired (309,595 ) $ 10.00 Outstanding as of July 30, 2016 3,588,792 $ 6.99 4.3 Options vested and expected to vest as of July 30, 2016 3,328,970 $ 7.19 4.1 Exercisable as of July 30, 2016 1,902,149 $ 8.88 3.0 The weighted average grant date fair value of options granted during the six months ended July 30, 2016 and August 1, 2015 was $0.32 and $0.51, respectively. During the three and six months ended July 30, 2016 and August 1, 2015, the Company recorded stock-based compensation expense (benefit) and additional paid-in capital relating to stock-based compensation of approximately $0.0 million, $0.1 million, $(0.0) million and $(0.6) million, respectively. During the three and six months ended July 30, 2016, the Company recorded reversals of stock option expense of $0.1 million and $0.2 million, respectively, associated with the forfeitures of stock options, including $0.1 million and $0.1 million, respectively, for former executive officers. Stock-based compensation benefit is recorded in “Selling, general and administrative” expenses in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 30, 2016
Income Taxes	8. Income Taxes The effective income tax rate was (3.8)% and 0.2 % for the three and six months ended July 30, 2016. This effective income tax rate differed from the statutory federal income tax rate of 35% primarily from increases in the valuation allowance recorded for additional deferred tax assets generated primarily from operating losses in the three and six months ended July 30, 2016 by the Company’s U.S. operations. The effective income tax rate was (15.4)% and (4.9)% for the three and six months ended August 1, 2015. This effective income tax rate differed from the statutory federal income tax rate of 35% primarily from increases in the valuation allowance recorded for additional deferred tax assets generated primarily from operating losses in the three and six months ended August 1, 2015 by the Company’s U.S. operations.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jul. 30, 2016
Related Party Transactions	9. Related Party Transactions The Company, Parent, and affiliates have purchased and may, from time to time, purchase portions of the Company’s indebtedness. All of these purchases have been open market transactions and any interest payments to Parent or affiliates made thereon are paid in accordance with the associated indenture. As of July 30, 2016 and January 30, 2016, Parent and affiliates held $242.3 million and $233.0 million of the Company’s indebtedness and the Company had accrued interest payable associated with the indebtedness in the amounts of $16.4 million and $4.0 million, respectively. For the three and six months ended July 30, 2016 and August 1, 2015, the Company recognized interest expense related to the indebtedness held by Parent and affiliates of $6.3 million, $12.4 million, $5.7 million and $11.4 million, respectively. On June 1, 2016, the Company issued an additional $9.2 million aggregate principal amount of New PIK Subordinated Notes in payment of interest due June 1, 2016.

Segment Information

Segment Information	6 Months Ended
	Jul. 30, 2016
Segment Information	10. Segment Information The Company is organized based on the geographic markets in which it operates. Under this structure, the Company currently has two reportable segments: North America and Europe. The Company accounts for the goods it sells to third parties under franchising and licensing agreements within “Net sales” and “Cost of sales, occupancy and buying expenses” in the Company’s Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss within its North America segment. The franchise fees the Company charges under the franchising agreements are reported in “Other income, net” in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss within its Europe segment. Substantially all of the interest expense on the Company’s outstanding debt is recorded in the Company’s North America segment. Net sales, depreciation and amortization and operating income for the three and six months ended July 30, 2016 and August 1, 2015 are as follows (in thousands): Three Months Three Months Six Months Six Months Ended Ended Ended Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Net sales: North America $ 194,774 $ 210,567 $ 394,080 $ 416,295 Europe 122,398 137,020 222,739 251,287 Total net sales 317,172 347,587 616,819 667,582 Depreciation and amortization: North America 8,337 10,166 17,432 19,359 Europe 5,459 5,468 10,424 10,829 Total depreciation and amortization 13,796 15,634 27,856 30,188 Operating income for reportable segments: North America 16,184 24,870 40,755 44,455 Europe 8,675 14,244 671 14,090 Total operating income for reportable segments 24,859 39,114 41,426 58,545 Severance and transaction-related costs 125 420 1,698 827 Consolidated operating income 24,734 38,694 39,728 57,718 Interest expense, net 55,623 55,044 110,702 109,464 Consolidated loss before income tax expense $ (30,889 ) $ (16,350 ) $ (70,974 ) $ (51,746 ) Excluded from operating income for the North America segment are severance and transaction-related costs of approximately $0.0 million and $0.2 million for the three months ended July 30, 2016 and August 1, 2015, respectively, and $1.3 million and $0.4 million for the six months ended July 30, 2016 and August 1, 2015, respectively. Excluded from operating income for the Europe segment are severance and transaction-related costs of approximately $0.1 million and $0.2 million for the three months ended July 30, 2016 and August 1, 2015, respectively, and $0.4 million and $0.4 million for the six months ended July 30, 2016 and August 1, 2015, respectively.

Supplemental Financial Informat

Supplemental Financial Information	6 Months Ended
	Jul. 30, 2016
Supplemental Financial Information	11. Supplemental Financial Information On May 29, 2007, Claire’s Stores, Inc. (the “Issuer”), issued the Senior Subordinated Notes, (collectively, the “2007 Notes”). On March 4, 2011, the Issuer issued the Senior Secured Second Lien Notes, (collectively, the “2011 Notes”). On February 28, 2012, March 12, 2012 and September 20, 2012, the Issuer issued the 9.0% Senior Secured First Lien Notes (collectively, the “2012 Notes”). On March 15, 2013, the Issuer issued the 6.125% Senior Secured First Lien Notes and on May 14, 2013, the Issuer issued the 7.75% Senior Notes (collectively, the “2013 Notes”). On May 4, 2016 and June 1, 2016, the Issuer issued the New PIK Subordinated Notes (the “2016 Notes”). The 2007 Notes, the 2011 Notes and the 2016 Notes are irrevocably and unconditionally guaranteed, jointly and severally, by all wholly-owned domestic current and future subsidiaries of Claire’s Stores, Inc. that guarantee the Company’s U.S. Credit Facility. The 2012 Notes and the 2013 Notes are unconditionally guaranteed, jointly and severally, by all wholly-owned domestic current and future subsidiaries of Claire’s Stores, Inc. As of July 30, 2016, Claire’s Stores, Inc. owned 100% of its domestic subsidiaries that guarantee the 2007 Notes, 2011 Notes, 2012 Notes, 2016 Notes, and 2013 Notes. All guarantors are collectively referred to as the “Guarantors.” The Company’s other subsidiaries, principally its international subsidiaries including its European, Canadian and Asian subsidiaries (the “Non-Guarantors”), are not guarantors of these Notes. See Note 12 –Subsequent Event. The tables in the following pages present the condensed consolidating financial information for the Issuer, the Guarantors and the Non-Guarantors, together with eliminations, as of and for the periods indicated. The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the Issuer, Guarantors and Non-Guarantors operated as independent entities. Condensed Consolidating Balance Sheet July 30, 2016 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 33,298 $ 4,644 $ 37,330 $ — $ 75,272 Inventories — 89,012 64,602 — 153,614 Prepaid expenses 1,182 1,652 15,070 — 17,904 Other current assets — 15,601 9,075 — 24,676 Total current assets 34,480 110,909 126,077 — 271,466 Property and equipment: Furniture, fixtures and equipment 5,926 158,918 79,096 — 243,940 Leasehold improvements 1,315 188,953 117,952 — 308,220 7,241 347,871 197,048 — 552,160 Accumulated depreciation and amortization (4,935 ) (259,589 ) (130,712 ) — (395,236 ) 2,306 88,282 66,336 — 156,924 Leased property under capital lease: Land and building — 18,055 — — 18,055 Accumulated depreciation and amortization — (5,862 ) — — (5,862 ) — 12,193 — — 12,193 Intercompany receivables — 224,498 5,811 (230,309 ) — Investment in subsidiaries 1,834,608 (46,111 ) — (1,788,497 ) — Goodwill — 987,517 314,405 — 1,301,922 Intangible assets, net 257,000 443 211,698 — 469,141 Other assets 3,443 4,939 37,598 — 45,980 2,095,051 1,171,286 569,512 (2,018,806 ) 1,817,043 Total assets $ 2,131,837 $ 1,382,670 $ 761,925 $ (2,018,806 ) $ 2,257,626 LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT) Current liabilities: Revolving credit facilities $ 109,407 $ — $ 48,960 $ — $ 158,367 Current portion of long-term debt 268,157 — — — 268,157 Trade accounts payable (413 ) 21,945 45,807 — 67,339 Income taxes payable — 5 4,330 — 4,335 Accrued interest payable 68,211 — 52 — 68,263 Accrued expenses and other current liabilities 8,508 34,308 34,443 — 77,259 Total current liabilities 453,870 56,258 133,592 — 643,720 Intercompany payables 230,309 — — (230,309 ) — Long-term debt 2,094,410 — — — 2,094,410 Obligation under capital lease — 16,557 — — 16,557 Deferred tax liability — 94,700 8,289 — 102,989 Deferred rent expense — 23,842 11,159 — 35,001 Unfavorable lease obligations and other long-term liabilities — 11,694 7 — 11,701 2,324,719 146,793 19,455 (230,309 ) 2,260,658 Stockholder’s equity (deficit): Common stock — 367 2 (369 ) — Additional paid in capital 618,828 1,435,909 797,656 (2,233,565 ) 618,828 Accumulated other comprehensive income (loss), net of tax (44,909 ) (4,831 ) (40,536 ) 45,367 (44,909 ) Accumulated deficit (1,220,671 ) (251,826 ) (148,244 ) 400,070 (1,220,671 ) (646,752 ) 1,179,619 608,878 (1,788,497 ) (646,752 ) Total liabilities and stockholder’s equity (deficit) $ 2,131,837 $ 1,382,670 $ 761,925 $ (2,018,806 ) $ 2,257,626 Condensed Consolidating Balance Sheet January 30, 2016 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 2,664 $ 3,394 $ 12,813 $ — $ 18,871 Inventories — 94,014 57,940 — 151,954 Prepaid expenses 344 1,485 13,847 — 15,676 Other current assets — 16,023 10,231 — 26,254 Total current assets 3,008 114,916 94,831 — 212,755 Property and equipment: Furniture, fixtures and equipment 5,537 160,128 80,289 — 245,954 Leasehold improvements 1,315 191,085 117,621 — 310,021 6,852 351,213 197,910 — 555,975 Accumulated depreciation and amortization (4,455 ) (252,181 ) (126,698 ) — (383,334 ) 2,397 99,032 71,212 — 172,641 Leased property under capital lease: Land and building — 18,055 — — 18,055 Accumulated depreciation and amortization — (5,416 ) — — (5,416 ) — 12,639 — — 12,639 Intercompany receivables — 169,836 43,000 (212,836 ) — Investment in subsidiaries 1,836,079 (43,436 ) — (1,792,643 ) — Goodwill — 987,517 314,405 — 1,301,922 Intangible assets, net 257,000 671 212,556 — 470,227 Other assets 486 3,507 39,378 — 43,371 2,093,565 1,118,095 609,339 (2,005,479 ) 1,815,520 Total assets $ 2,098,970 $ 1,344,682 $ 775,382 $ (2,005,479 ) $ 2,213,555 LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT) Current liabilities: Revolving credit facilities $ 41,059 $ — $ — $ — $ 41,059 Trade accounts payable 642 27,930 44,561 — 73,133 Income taxes payable — 228 5,937 — 6,165 Accrued interest payable 67,948 — 36 — 67,984 Accrued expenses and other current liabilities 5,657 39,834 39,734 — 85,225 Total current liabilities 115,306 67,992 90,268 — 273,566 Intercompany payables 212,836 — — (212,836 ) — Long-term debt 2,351,072 — — — 2,351,072 Obligation under capital lease — 16,712 — — 16,712 Deferred tax liability — 93,626 9,683 — 103,309 Deferred rent expense — 24,815 11,329 — 36,144 Unfavorable lease obligations and other long-term liabilities — 12,977 19 — 12,996 2,563,908 148,130 21,031 (212,836 ) 2,520,233 Stockholder’s equity (deficit): Common stock — 367 2 (369 ) — Additional paid in capital 618,831 1,435,909 797,656 (2,233,565 ) 618,831 Accumulated other comprehensive income (loss), net of tax (49,239 ) (7,390 ) (41,341 ) 48,731 (49,239 ) Accumulated deficit (1,149,836 ) (300,326 ) (92,234 ) 392,560 (1,149,836 ) (580,244 ) 1,128,560 664,083 (1,792,643 ) (580,244 ) Total liabilities and stockholder’s equity (deficit) $ 2,098,970 $ 1,344,682 $ 775,382 $ (2,005,479 ) $ 2,213,555 Condensed Consolidating Statement of Operations and Comprehensive Loss For The Three Months Ended July 30, 2016 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated Net sales $ — $ 179,775 $ 137,397 $ — $ 317,172 Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below) 2,861 94,245 73,577 — 170,683 Gross profit (deficit) (2,861 ) 85,530 63,820 — 146,489 Other expenses: Selling, general and administrative 4,794 58,211 49,367 — 112,372 Depreciation and amortization 243 7,543 6,010 — 13,796 Severance and transaction-related costs 1 — 124 — 125 Other (income) expense (2,102 ) 398 (2,834 ) — (4,538 ) 2,936 66,152 52,667 — 121,755 Operating income (loss) (5,797 ) 19,378 11,153 — 24,734 Interest expense, net 54,717 553 353 — 55,623 Income (loss) before income taxes (60,514 ) 18,825 10,800 — (30,889 ) Income tax expense (benefit) — 563 625 — 1,188 Income (loss) from continuing operations (60,514 ) 18,262 10,175 — (32,077 ) Equity in earnings (loss) of subsidiaries 28,437 70 — (28,507 ) — Net income (loss) (32,077 ) 18,332 10,175 (28,507 ) (32,077 ) Foreign currency translation adjustments (2,340 ) (548 ) (253 ) 801 (2,340 ) Net gain (loss) on intra-entity foreign currency transactions, net of tax (6,385 ) (768 ) (6,514 ) 7,282 (6,385 ) Other comprehensive income (loss) (8,725 ) (1,316 ) (6,767 ) 8,083 (8,725 ) Comprehensive income (loss) $ (40,802 ) $ 17,016 $ 3,408 $ (20,424 ) $ (40,802 ) Condensed Consolidating Statement of Operations and Comprehensive Loss For The Three Months Ended August 1, 2015 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated Net sales $ — $ 194,689 $ 152,898 $ — $ 347,587 Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below) 29 100,824 78,223 — 179,076 Gross profit (deficit) (29 ) 93,865 74,675 — 168,511 Other expenses: Selling, general and administrative 3,583 60,669 52,117 — 116,369 Depreciation and amortization 211 9,210 6,213 — 15,634 Severance and transaction-related costs 226 3 191 — 420 Other (income) expense (1,657 ) 152 (1,101 ) — (2,606 ) 2,363 70,034 57,420 — 129,817 Operating income (loss) (2,392 ) 23,831 17,255 — 38,694 Interest expense, net 54,261 549 234 — 55,044 Income (loss) before income taxes (56,653 ) 23,282 17,021 — (16,350 ) Income tax expense (benefit) — 696 1,823 — 2,519 Income (loss) from continuing operations (56,653 ) 22,586 15,198 — (18,869 ) Equity in earnings (loss) of subsidiaries 37,784 366 — (38,150 ) — Net income (loss) (18,869 ) 22,952 15,198 (38,150 ) (18,869 ) Foreign currency translation adjustments (516 ) (689 ) 3,321 (2,632 ) (516 ) Net gain (loss) on intra-entity foreign currency transactions, net of tax (3,547 ) (1,850 ) (3,482 ) 5,332 (3,547 ) Other comprehensive income (loss) (4,063 ) (2,539 ) (161 ) 2,700 (4,063 ) Comprehensive income (loss) $ (22,932 ) $ 20,413 $ 15,037 $ (35,450 ) $ (22,932 ) Condensed Consolidating Statement of Operations and Comprehensive Loss For The Six Months Ended July 30, 2016 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated Net sales $ — $ 365,799 $ 251,020 $ — $ 616,819 Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below) 5,586 185,497 137,953 — 329,036 Gross profit (deficit) (5,586 ) 180,302 113,067 — 287,783 Other expenses: Selling, general and administrative 9,565 113,624 96,905 — 220,094 Depreciation and amortization 480 15,857 11,519 — 27,856 Severance and transaction-related costs 1,349 (3 ) 352 — 1,698 Other (income) expense (3,513 ) 414 1,506 — (1,593 ) 7,881 129,892 110,282 — 248,055 Operating income (loss) (13,467 ) 50,410 2,785 — 39,728 Interest expense, net 108,986 1,093 623 — 110,702 Income (loss) before income taxes (122,453 ) 49,317 2,162 — (70,974 ) Income tax expense (benefit) — (776 ) 637 — (139 ) Income (loss) from continuing operations (122,453 ) 50,093 1,525 — (70,835 ) Equity in earnings (loss) of subsidiaries 51,618 (1,594 ) — (50,024 ) — Net income (loss) (70,835 ) 48,499 1,525 (50,024 ) (70,835 ) Foreign currency translation adjustments 520 938 (2,959 ) 2,021 520 Net gain on intra-entity foreign currency transactions, net of tax 3,810 1,621 3,764 (5,385 ) 3,810 Other comprehensive income (loss) 4,330 2,559 805 (3,364 ) 4,330 Comprehensive income (loss) $ (66,505 ) $ 51,058 $ 2,330 $ (53,388 ) $ (66,505 ) Condensed Consolidating Statement of Operations and Comprehensive Loss For The Six Months Ended August 1, 2015 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated Net sales $ — $ 387,197 $ 280,385 $ — $ 667,582 Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below) 82 203,001 148,845 — 351,928 Gross profit (deficit) (82 ) 184,196 131,540 — 315,654 Other expenses: Selling, general and administrative 6,220 120,126 103,041 — 229,387 Depreciation and amortization 412 17,523 12,253 — 30,188 Severance and transaction-related costs 361 3 463 — 827 Other (income) expense (1,018 ) (615 ) (833 ) — (2,466 ) 5,975 137,037 114,924 — 257,936 Operating income (loss) (6,057 ) 47,159 16,616 — 57,718 Interest expense, net 107,889 1,092 483 — 109,464 Income (loss) before income taxes (113,946 ) 46,067 16,133 — (51,746 ) Income tax expense (benefit) — (495 ) 3,036 — 2,541 Income (loss) from continuing operations (113,946 ) 46,562 13,097 — (54,287 ) Equity in earnings (loss) of subsidiaries 59,659 (1,289 ) — (58,370 ) — Net income (loss) (54,287 ) 45,273 13,097 (58,370 ) (54,287 ) Foreign currency translation adjustments (601 ) (287 ) 876 (589 ) (601 ) Net gain on intra-entity foreign currency transactions, net of tax (2,998 ) (708 ) (2,949 ) 3,657 (2,998 ) Other comprehensive income (loss) (3,599 ) (995 ) (2,073 ) 3,068 (3,599 ) Comprehensive income (loss) $ (57,886 ) $ 44,278 $ 11,024 $ (55,302 ) $ (57,886 ) Condensed Consolidating Statement of Cash Flows Six Months Ended July 30, 2016 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (70,835 ) $ 48,499 $ 1,525 $ (50,024 ) $ (70,835 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Loss (equity) in earnings of subsidiaries (51,618 ) 1,594 — 50,024 — Depreciation and amortization 480 15,857 11,519 — 27,856 Amortization of lease rights and other assets — — 1,371 — 1,371 Amortization of debt issuance costs 4,052 — 170 — 4,222 Accretion of debt premium (1,339 ) — — — (1,339 ) Non-cash in kind interest expense 9,156 — — — 9,156 Net accretion of unfavorable lease obligations — (125 ) (1 ) — (126 ) Loss on sale/retirement of property and equipment, net — 165 5 — 170 Stock-based compensation expense (benefit) (13 ) — 10 — (3 ) (Increase) decrease in: Inventories — 5,002 (6,145 ) — (1,143 ) Prepaid expenses (839 ) (166 ) (2,046 ) — (3,051 ) Other assets 17 105 (403 ) — (281 ) Increase (decrease) in: Trade accounts payable (1,054 ) (5,703 ) 769 — (5,988 ) Income taxes payable — (264 ) 223 — (41 ) Accrued interest payable 262 — 22 — 284 Accrued expenses and other liabilities (124 ) (6,524 ) (5,349 ) — (11,997 ) Deferred income taxes — — (545 ) — (545 ) Deferred rent expense — (973 ) (240 ) — (1,213 ) Net cash provided by (used in) operating activities (111,855 ) 57,467 885 — (53,503 ) Cash flows from investing activities: Acquisition of property and equipment (389 ) (5,058 ) (3,076 ) — (8,523 ) Acquisition of intangible assets/lease rights — (23 ) (80 ) — (103 ) Net cash used in investing activities (389 ) (5,081 ) (3,156 ) — (8,626 ) Cash flows from financing activities: Proceeds from revolving credit facilities 68,000 — 52,618 — 120,618 Payments on revolving credit facilities — — — — — Payment of debt issuance costs (25 ) — (54 ) — (79 ) Principal payments on capital lease — (116 ) — — (116 ) Intercompany activity, net 74,903 (54,661 ) (20,242 ) — — Net cash provided by (used in) financing activities 142,878 (54,777 ) 32,322 — 120,423 Effect of foreign currency exchange rate changes on cash and cash equivalents — 3,641 (5,534 ) — (1,893 ) Net increase in cash and cash equivalents 30,634 1,250 24,517 — 56,401 Cash and cash equivalents, at beginning of period 2,664 3,394 12,813 — 18,871 Cash and cash equivalents, at end of period $ 33,298 $ 4,644 $ 37,330 $ — $ 75,272 Condensed Consolidating Statement of Cash Flows Six Months Ended August 1, 2015 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (54,287 ) $ 45,273 $ 13,097 $ (58,370 ) $ (54,287 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in earnings of subsidiaries (59,659 ) 1,289 — 58,370 — Depreciation and amortization 412 17,523 12,253 — 30,188 Amortization of lease rights and other assets — — 1,551 — 1,551 Amortization of debt issuance costs 3,952 — 132 — 4,084 Accretion of debt premium (1,229 ) — — — (1,229 ) Net accretion of unfavorable lease obligations — (182 ) (7 ) — (189 ) Loss on sale/retirement of property and equipment, net — 248 — — 248 Gain on sale of intangible assets/lease rights — — (1,596 ) — (1,596 ) Stock-based compensation benefit (514 ) — (47 ) — (561 ) (Increase) decrease in: Inventories — (15,641 ) (10,026 ) — (25,667 ) Prepaid expenses (535 ) 103 (1,104 ) — (1,536 ) Other assets (32 ) (2,320 ) (2,136 ) — (4,488 ) Increase (decrease) in: Trade accounts payable (1,673 ) 3,051 10,135 — 11,513 Income taxes payable — (344 ) 2,153 — 1,809 Accrued interest payable 289 — (213 ) — 76 Accrued expenses and other liabilities (1,145 ) (1,869 ) (2,500 ) — (5,514 ) Deferred income taxes — — (134 ) — (134 ) Deferred rent expense — 97 2,835 — 2,932 Net cash provided by (used in) operating activities (114,421 ) 47,228 24,393 — (42,800 ) Cash flows from investing activities: Acquisition of property and equipment (427 ) (8,738 ) (5,214 ) — (14,379 ) Acquisition of intangible assets/lease rights — (25 ) (102 ) — (127 ) Proceeds from sale of intangible assets/lease rights — — 1,736 — 1,736 Net cash used in investing activities (427 ) (8,763 ) (3,580 ) — (12,770 ) Cash flows from financing activities: Proceeds from revolving credit facilities 156,300 — 93,898 — 250,198 Payments on revolving credit facilities (45,000 ) — (93,898 ) — (138,898 ) Payment of debt issuance costs — — (82 ) — (82 ) Principal payments on capital lease — (81 ) — — (81 ) Intercompany activity, net 35,848 (35,414 ) (434 ) — — Net cash provided by (used in) financing activities 147,148 (35,495 ) (516 ) — 111,137 Effect of foreign currency exchange rate changes on cash and cash equivalents — (1,529 ) 1,203 — (326 ) Net increase in cash and cash equivalents 32,300 1,441 21,500 — 55,241 Cash and cash equivalents, at beginning of period 3,480 4,009 19,897 — 27,386 Cash and cash equivalents, at end of period 35,780 5,450 41,397 — 82,627 Restricted cash, at end of period — — 336 — 336 Cash and cash equivalents and restricted cash, at end of period $ 35,780 $ 5,450 $ 41,733 $ — $ 82,963

Subsequent Events

Subsequent Events	6 Months Ended
	Jul. 30, 2016
Subsequent Events	12. Subsequent Events Exchange Offer On August 12, 2016, the Company commenced a private offer to exchange (the “Exchange Offer”), upon the terms and conditions set forth in a confidential offer to exchange statement dated August 12, 2016 and a related letter of transmittal (together, the “Offer to Exchange Statement”), any and all of its outstanding Senior Secured Second Lien Notes, 7.75% Senior Notes, and the Senior Subordinated Notes (not held by Claire’s Inc.), and collectively (the “Exchange Notes”) held by eligible holders, for up to $40.0 million of new Senior Secured Term Loans maturing 2021 of the Company (the “Claire’s Stores Term Loans”), up to $130.0 million of new Senior Secured Term Loans maturing 2021 of CLSIP LLC (“CLSIP”), which is a newly formed unrestricted subsidiary of the Company (the “CLSIP Term Loans”) and up to $60.0 million of new Senior Term Loans maturing 2021 of Claire’s Gibraltar, the holding company of the Company’s European operations (the “Claire’s Gibraltar Term Loans”, and collectively, the “Term Loans”). On August 29, 2016, the Company announced amended terms of the Exchange Offer as set forth in a confidential amended and restated offer to exchange statement dated August 29, 2016 and a related letter of transmittal. Subject to the satisfaction or waiver of the conditions precedent, the closing of the transactions contemplated by the Exchange Offer is expected to occur promptly after the expiration. Pursuant to the terms of the Exchange Offer, if the Exchange Offer is not fully subscribed, the Apollo Funds and Claire’s Inc., the parent of the Company (“Claire’s Inc.” and together with the Apollo Funds, the “Affiliated Holders”), agreed to effect a similar exchange of up to approximately $183.6 million aggregate principal amount of Claire’s New PIK Subordinated Notes held by the Apollo Funds and up to approximately $58.7 million aggregate principal amount of existing Subordinated Notes held by Claire’s Inc., which exchange will count towards satisfaction of the Exchange Offer’s $400 million Minimum Tender Condition (the “Affiliated Holder Exchange”). Based on the tenders through September 16, 2016 and the Affiliated Holder Exchange, approximately $575 million of the Company’s outstanding debt will be exchanged for approximately $179 million of new Term Loans. Election to Delay Interest Payments On September 15, 2016, the Company elected to delay making interest payments due September 15, 2016 on its outstanding Senior Secured Second Lien Notes, 6.125% Senior Secured First Lien Notes and 9.0% Senior Secured First Lien Notes (the “Secured Notes”) pending completion of the Exchange Offer and the Europe Credit Facility Refinancing described below. Non-payment of this interest would become an event of default under the indentures governing the Secured Notes only if the payment is not made within 30 days. The total amount of interest due September 15, 2016 is approximately $77 million. This includes approximately $10 million of interest accrued on the Senior Secured Second Lien Notes that have been tendered in the Exchange Offer, and which will be cancelled upon completion of the Exchange Offer. Under the indentures governing each series of Secured Notes, the Company has a 30-day period after the interest payment date before an event of default would occur on October 15, 2016. The occurrence of an event of default under the indentures would give the trustee or the holders of at least 30% of principal amount of each series of Secured Notes the option to declare all of the Secured Notes of such series due and payable immediately upon such event of default. Additionally, failure to make the interest payments on the Secured Notes when due at the end of such period would constitute an event of default under certain of the Company’s other outstanding indebtedness. Europe Credit Facility Refinancing Claire’s Gibraltar and certain subsidiaries are party to an unsecured multi-currency revolving credit facility in the amount of $50.0 million that matures August 20, 2017. Consent of the lender under the Europe Credit Facility is required for the consummation of the Exchange Offer, and in addition, consent of the lender is required to allow Claire’s Gibraltar to distribute cash to the Company in an amount required to enable the Company to fund its near term debt service and other obligations, including the interest payments due September 15, 2016. As of the date hereof, the lender has not provided such consents. The Exchange Offer is conditioned on (i) the lender agreeing to an amendment satisfactory to Claire’s Gibraltar providing the foregoing consents, or (ii) the refinancing of the Europe Credit Facility with new debt arrangements satisfactory to the Company, CLSIP and Claire’s Gibraltar that allow the Exchange Offer and distributions of cash from Claire’s Gibraltar in amounts sufficient for the Company to fund its near term debt service and other obligations. This condition to the Exchange Offer cannot be waived by the Company, CLSIP and Claire’s Gibraltar. The Company, Claire’s Gibraltar and certain of its subsidiaries are in advanced discussions with the lender under the Europe Credit Facility with respect to an amended and restated facility that will provide the consents required for the consummation of the Exchange Offer and the distribution of certain cash to the Company. Upon the delivery of financial statements for the quarter ended July 30, 2016 to the lender under the Europe Credit Facility, the Company would have been in default under the Fixed Charge Cover Ratio covenant contained in the Europe Credit Facility. However, the Company received a waiver of this default from the lender. U.S. Credit Facility Refinancing On August 12, 2016, the Company entered into Amendment No. 3 (as supplemented, the “Third Amendment”) of the U.S. Credit Facility. Pursuant to the Third Amendment, the Company will complete a refinancing of the U.S. Credit Facility as follows: the Company, its domestic subsidiaries and Claire’s Inc., will be parties to an amendment and restatement of the U.S. Credit Facility (the “Second Amended and Restated Credit Facility”), pursuant to which, among other things, the availability will be reduced to an amount equal to $75.0 million less any amounts outstanding under the ABL Credit Facility (as defined below), the maturity will be extended to February 4, 2019 and certain covenants will be modified; the Company’s subsidiary Claire’s Gibraltar will be party to a new $40.0 million credit agreement maturing February 4, 2019 (the “Claire’s Gibraltar Credit Facility”), the proceeds of which will be used to reduce outstanding amounts under the U.S. Credit Facility by $40.0 million; and the Company, its domestic subsidiaries and Claire’s Inc., will be parties to a new ABL Credit Agreement (the “ABL Credit Facility”) maturing February 4, 2019, providing for revolving credit loans, subject to borrowing base availability, in an amount up to $75.0 million less any amounts outstanding under the U.S. Credit Facility. Each of the Second Amended and Restated Credit Facility, the Claire’s Gibraltar Credit Facility and the ABL Credit Facility was dated, executed and delivered on August 12, 2016. Nevertheless, the effectiveness of such agreements is subject to the satisfaction or waiver of the respective conditions set out in the Third Amendment upon completion of the Exchange Offer or as provided below. The Third Amendment provides that, if the Company notifies the Lenders on or before September 23, 2016, that the Exchange Offer will not be completed by September 23, 2016 as a result of the failure to satisfy any of the conditions to such Exchange Offer, including the failure to obtain the consent of the lender of the Company’s current European credit facility or to refinance such European credit facility, or for any other reason, then the Second Amended and Restated Credit Facility, the ABL Credit Facility, and, only if permitted by the lender under the European credit facility, the Claire’s Gibraltar Credit Facility, will become effective notwithstanding the fact that the Exchange Offer will not be completed at that time. If the Claire’s Gibraltar Credit Facility is not permitted, the Second Amended and Restated Credit Facility will provide for revolving credit loans of up to $115.0 million rather than $75.0 million, in either case, less any amounts outstanding under the ABL Credit Facility. In addition, upon the delivery of financial statements for the quarter ended July 30, 2016 to the lenders under the U.S. Credit Facility, the Company would have been in default under the Total Net Secured Leverage Ratio covenant contained in the U.S. Credit Facility. The terms of the Third Amendment include a waiver of this default upon the effectiveness thereof.

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jul. 30, 2016
Components of Debt	Debt as of July 30, 2016 and January 30, 2016 included the following components (in thousands): July 30, 2016 January 30, 2016 U.S. senior secured revolving credit facility due 2017 $ 110,200 $ 42,200 Europe unsecured revolving credit facility due 2017 49,339 — Unamortized debt issuance cost (1,172 ) (1,141 ) Total revolving credit facilities $ 158,367 $ 41,059 Current portion of long-term debt: 10.5% Senior subordinated notes due 2017 $ 85,212 $ — 10.5% PIK Senior subordinated notes due 2017 183,556 — Unamortized debt issuance cost (611 ) — Total current portion of long-term debt $ 268,157 $ — Long-term debt: 10.5% Senior subordinated notes due 2017 $ — $ 259,612 9.0% Senior secured first lien notes due 2019 (1) 1,133,015 1,134,354 8.875% Senior secured second lien notes due 2019 450,000 450,000 6.125% Senior secured first lien notes due 2020 210,000 210,000 7.75% Senior notes due 2020 320,000 320,000 Unamortized debt issuance cost (18,605 ) (22,894 ) Total long-term debt $ 2,094,410 $ 2,351,072 Obligation under capital lease (including current portion) $ 16,839 $ 16,954 (1) Amount includes unamortized premium of $8,015 and $9,354 as of July 30, 2016 and January 30, 2016, respectively.

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jul. 30, 2016
Components of Accumulated Other Comprehensive Income (Loss), Net of Tax	The following summary sets forth the components of accumulated other comprehensive income (loss), net of tax as follows (in thousands, net of tax): Foreign Derivative Total Balance as of January 30, 2016 $ (54,971 ) $ 5,732 $ (49,239 ) Other comprehensive income 4,330 — 4,330 Balance as of July 30, 2016 $ (50,641 ) $ 5,732 $ (44,909 )

Stock Options and Stock-Based21

Stock Options and Stock-Based Compensation (Tables)	6 Months Ended
	Jul. 30, 2016
Summary of Activity in Stock Option Plan	The following is a summary of activity in the Company’s stock option plan for the six months ended July 30, 2016: Weighted- Weighted- Average Average Remaining Number of Exercise Contractual Shares Price Term (Years) Outstanding as of January 30, 2016 3,710,022 $ 9.43 Options granted 1,085,500 $ 1.26 Options exercised — Options forfeited (897,135 ) $ 9.07 Options expired (309,595 ) $ 10.00 Outstanding as of July 30, 2016 3,588,792 $ 6.99 4.3 Options vested and expected to vest as of July 30, 2016 3,328,970 $ 7.19 4.1 Exercisable as of July 30, 2016 1,902,149 $ 8.88 3.0

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jul. 30, 2016
Net Sales, Depreciation and Amortization and Operating Income	Net sales, depreciation and amortization and operating income for the three and six months ended July 30, 2016 and August 1, 2015 are as follows (in thousands): Three Months Three Months Six Months Six Months Ended Ended Ended Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Net sales: North America $ 194,774 $ 210,567 $ 394,080 $ 416,295 Europe 122,398 137,020 222,739 251,287 Total net sales 317,172 347,587 616,819 667,582 Depreciation and amortization: North America 8,337 10,166 17,432 19,359 Europe 5,459 5,468 10,424 10,829 Total depreciation and amortization 13,796 15,634 27,856 30,188 Operating income for reportable segments: North America 16,184 24,870 40,755 44,455 Europe 8,675 14,244 671 14,090 Total operating income for reportable segments 24,859 39,114 41,426 58,545 Severance and transaction-related costs 125 420 1,698 827 Consolidated operating income 24,734 38,694 39,728 57,718 Interest expense, net 55,623 55,044 110,702 109,464 Consolidated loss before income tax expense $ (30,889 ) $ (16,350 ) $ (70,974 ) $ (51,746 )

Supplemental Financial Inform23

Supplemental Financial Information (Tables)	6 Months Ended
	Jul. 30, 2016
Condensed Consolidating Balance Sheet	Condensed Consolidating Balance Sheet July 30, 2016 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 33,298 $ 4,644 $ 37,330 $ — $ 75,272 Inventories — 89,012 64,602 — 153,614 Prepaid expenses 1,182 1,652 15,070 — 17,904 Other current assets — 15,601 9,075 — 24,676 Total current assets 34,480 110,909 126,077 — 271,466 Property and equipment: Furniture, fixtures and equipment 5,926 158,918 79,096 — 243,940 Leasehold improvements 1,315 188,953 117,952 — 308,220 7,241 347,871 197,048 — 552,160 Accumulated depreciation and amortization (4,935 ) (259,589 ) (130,712 ) — (395,236 ) 2,306 88,282 66,336 — 156,924 Leased property under capital lease: Land and building — 18,055 — — 18,055 Accumulated depreciation and amortization — (5,862 ) — — (5,862 ) — 12,193 — — 12,193 Intercompany receivables — 224,498 5,811 (230,309 ) — Investment in subsidiaries 1,834,608 (46,111 ) — (1,788,497 ) — Goodwill — 987,517 314,405 — 1,301,922 Intangible assets, net 257,000 443 211,698 — 469,141 Other assets 3,443 4,939 37,598 — 45,980 2,095,051 1,171,286 569,512 (2,018,806 ) 1,817,043 Total assets $ 2,131,837 $ 1,382,670 $ 761,925 $ (2,018,806 ) $ 2,257,626 LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT) Current liabilities: Revolving credit facilities $ 109,407 $ — $ 48,960 $ — $ 158,367 Current portion of long-term debt 268,157 — — — 268,157 Trade accounts payable (413 ) 21,945 45,807 — 67,339 Income taxes payable — 5 4,330 — 4,335 Accrued interest payable 68,211 — 52 — 68,263 Accrued expenses and other current liabilities 8,508 34,308 34,443 — 77,259 Total current liabilities 453,870 56,258 133,592 — 643,720 Intercompany payables 230,309 — — (230,309 ) — Long-term debt 2,094,410 — — — 2,094,410 Obligation under capital lease — 16,557 — — 16,557 Deferred tax liability — 94,700 8,289 — 102,989 Deferred rent expense — 23,842 11,159 — 35,001 Unfavorable lease obligations and other long-term liabilities — 11,694 7 — 11,701 2,324,719 146,793 19,455 (230,309 ) 2,260,658 Stockholder’s equity (deficit): Common stock — 367 2 (369 ) — Additional paid in capital 618,828 1,435,909 797,656 (2,233,565 ) 618,828 Accumulated other comprehensive income (loss), net of tax (44,909 ) (4,831 ) (40,536 ) 45,367 (44,909 ) Accumulated deficit (1,220,671 ) (251,826 ) (148,244 ) 400,070 (1,220,671 ) (646,752 ) 1,179,619 608,878 (1,788,497 ) (646,752 ) Total liabilities and stockholder’s equity (deficit) $ 2,131,837 $ 1,382,670 $ 761,925 $ (2,018,806 ) $ 2,257,626 Condensed Consolidating Balance Sheet January 30, 2016 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 2,664 $ 3,394 $ 12,813 $ — $ 18,871 Inventories — 94,014 57,940 — 151,954 Prepaid expenses 344 1,485 13,847 — 15,676 Other current assets — 16,023 10,231 — 26,254 Total current assets 3,008 114,916 94,831 — 212,755 Property and equipment: Furniture, fixtures and equipment 5,537 160,128 80,289 — 245,954 Leasehold improvements 1,315 191,085 117,621 — 310,021 6,852 351,213 197,910 — 555,975 Accumulated depreciation and amortization (4,455 ) (252,181 ) (126,698 ) — (383,334 ) 2,397 99,032 71,212 — 172,641 Leased property under capital lease: Land and building — 18,055 — — 18,055 Accumulated depreciation and amortization — (5,416 ) — — (5,416 ) — 12,639 — — 12,639 Intercompany receivables — 169,836 43,000 (212,836 ) — Investment in subsidiaries 1,836,079 (43,436 ) — (1,792,643 ) — Goodwill — 987,517 314,405 — 1,301,922 Intangible assets, net 257,000 671 212,556 — 470,227 Other assets 486 3,507 39,378 — 43,371 2,093,565 1,118,095 609,339 (2,005,479 ) 1,815,520 Total assets $ 2,098,970 $ 1,344,682 $ 775,382 $ (2,005,479 ) $ 2,213,555 LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT) Current liabilities: Revolving credit facilities $ 41,059 $ — $ — $ — $ 41,059 Trade accounts payable 642 27,930 44,561 — 73,133 Income taxes payable — 228 5,937 — 6,165 Accrued interest payable 67,948 — 36 — 67,984 Accrued expenses and other current liabilities 5,657 39,834 39,734 — 85,225 Total current liabilities 115,306 67,992 90,268 — 273,566 Intercompany payables 212,836 — — (212,836 ) — Long-term debt 2,351,072 — — — 2,351,072 Obligation under capital lease — 16,712 — — 16,712 Deferred tax liability — 93,626 9,683 — 103,309 Deferred rent expense — 24,815 11,329 — 36,144 Unfavorable lease obligations and other long-term liabilities — 12,977 19 — 12,996 2,563,908 148,130 21,031 (212,836 ) 2,520,233 Stockholder’s equity (deficit): Common stock — 367 2 (369 ) — Additional paid in capital 618,831 1,435,909 797,656 (2,233,565 ) 618,831 Accumulated other comprehensive income (loss), net of tax (49,239 ) (7,390 ) (41,341 ) 48,731 (49,239 ) Accumulated deficit (1,149,836 ) (300,326 ) (92,234 ) 392,560 (1,149,836 ) (580,244 ) 1,128,560 664,083 (1,792,643 ) (580,244 ) Total liabilities and stockholder’s equity (deficit) $ 2,098,970 $ 1,344,682 $ 775,382 $ (2,005,479 ) $ 2,213,555
Condensed Consolidating Statement of Operations and Comprehensive Loss	Condensed Consolidating Statement of Operations and Comprehensive Loss For The Three Months Ended July 30, 2016 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated Net sales $ — $ 179,775 $ 137,397 $ — $ 317,172 Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below) 2,861 94,245 73,577 — 170,683 Gross profit (deficit) (2,861 ) 85,530 63,820 — 146,489 Other expenses: Selling, general and administrative 4,794 58,211 49,367 — 112,372 Depreciation and amortization 243 7,543 6,010 — 13,796 Severance and transaction-related costs 1 — 124 — 125 Other (income) expense (2,102 ) 398 (2,834 ) — (4,538 ) 2,936 66,152 52,667 — 121,755 Operating income (loss) (5,797 ) 19,378 11,153 — 24,734 Interest expense, net 54,717 553 353 — 55,623 Income (loss) before income taxes (60,514 ) 18,825 10,800 — (30,889 ) Income tax expense (benefit) — 563 625 — 1,188 Income (loss) from continuing operations (60,514 ) 18,262 10,175 — (32,077 ) Equity in earnings (loss) of subsidiaries 28,437 70 — (28,507 ) — Net income (loss) (32,077 ) 18,332 10,175 (28,507 ) (32,077 ) Foreign currency translation adjustments (2,340 ) (548 ) (253 ) 801 (2,340 ) Net gain (loss) on intra-entity foreign currency transactions, net of tax (6,385 ) (768 ) (6,514 ) 7,282 (6,385 ) Other comprehensive income (loss) (8,725 ) (1,316 ) (6,767 ) 8,083 (8,725 ) Comprehensive income (loss) $ (40,802 ) $ 17,016 $ 3,408 $ (20,424 ) $ (40,802 ) Condensed Consolidating Statement of Operations and Comprehensive Loss For The Three Months Ended August 1, 2015 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated Net sales $ — $ 194,689 $ 152,898 $ — $ 347,587 Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below) 29 100,824 78,223 — 179,076 Gross profit (deficit) (29 ) 93,865 74,675 — 168,511 Other expenses: Selling, general and administrative 3,583 60,669 52,117 — 116,369 Depreciation and amortization 211 9,210 6,213 — 15,634 Severance and transaction-related costs 226 3 191 — 420 Other (income) expense (1,657 ) 152 (1,101 ) — (2,606 ) 2,363 70,034 57,420 — 129,817 Operating income (loss) (2,392 ) 23,831 17,255 — 38,694 Interest expense, net 54,261 549 234 — 55,044 Income (loss) before income taxes (56,653 ) 23,282 17,021 — (16,350 ) Income tax expense (benefit) — 696 1,823 — 2,519 Income (loss) from continuing operations (56,653 ) 22,586 15,198 — (18,869 ) Equity in earnings (loss) of subsidiaries 37,784 366 — (38,150 ) — Net income (loss) (18,869 ) 22,952 15,198 (38,150 ) (18,869 ) Foreign currency translation adjustments (516 ) (689 ) 3,321 (2,632 ) (516 ) Net gain (loss) on intra-entity foreign currency transactions, net of tax (3,547 ) (1,850 ) (3,482 ) 5,332 (3,547 ) Other comprehensive income (loss) (4,063 ) (2,539 ) (161 ) 2,700 (4,063 ) Comprehensive income (loss) $ (22,932 ) $ 20,413 $ 15,037 $ (35,450 ) $ (22,932 ) Condensed Consolidating Statement of Operations and Comprehensive Loss For The Six Months Ended July 30, 2016 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated Net sales $ — $ 365,799 $ 251,020 $ — $ 616,819 Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below) 5,586 185,497 137,953 — 329,036 Gross profit (deficit) (5,586 ) 180,302 113,067 — 287,783 Other expenses: Selling, general and administrative 9,565 113,624 96,905 — 220,094 Depreciation and amortization 480 15,857 11,519 — 27,856 Severance and transaction-related costs 1,349 (3 ) 352 — 1,698 Other (income) expense (3,513 ) 414 1,506 — (1,593 ) 7,881 129,892 110,282 — 248,055 Operating income (loss) (13,467 ) 50,410 2,785 — 39,728 Interest expense, net 108,986 1,093 623 — 110,702 Income (loss) before income taxes (122,453 ) 49,317 2,162 — (70,974 ) Income tax expense (benefit) — (776 ) 637 — (139 ) Income (loss) from continuing operations (122,453 ) 50,093 1,525 — (70,835 ) Equity in earnings (loss) of subsidiaries 51,618 (1,594 ) — (50,024 ) — Net income (loss) (70,835 ) 48,499 1,525 (50,024 ) (70,835 ) Foreign currency translation adjustments 520 938 (2,959 ) 2,021 520 Net gain on intra-entity foreign currency transactions, net of tax 3,810 1,621 3,764 (5,385 ) 3,810 Other comprehensive income (loss) 4,330 2,559 805 (3,364 ) 4,330 Comprehensive income (loss) $ (66,505 ) $ 51,058 $ 2,330 $ (53,388 ) $ (66,505 ) Condensed Consolidating Statement of Operations and Comprehensive Loss For The Six Months Ended August 1, 2015 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated Net sales $ — $ 387,197 $ 280,385 $ — $ 667,582 Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below) 82 203,001 148,845 — 351,928 Gross profit (deficit) (82 ) 184,196 131,540 — 315,654 Other expenses: Selling, general and administrative 6,220 120,126 103,041 — 229,387 Depreciation and amortization 412 17,523 12,253 — 30,188 Severance and transaction-related costs 361 3 463 — 827 Other (income) expense (1,018 ) (615 ) (833 ) — (2,466 ) 5,975 137,037 114,924 — 257,936 Operating income (loss) (6,057 ) 47,159 16,616 — 57,718 Interest expense, net 107,889 1,092 483 — 109,464 Income (loss) before income taxes (113,946 ) 46,067 16,133 — (51,746 ) Income tax expense (benefit) — (495 ) 3,036 — 2,541 Income (loss) from continuing operations (113,946 ) 46,562 13,097 — (54,287 ) Equity in earnings (loss) of subsidiaries 59,659 (1,289 ) — (58,370 ) — Net income (loss) (54,287 ) 45,273 13,097 (58,370 ) (54,287 ) Foreign currency translation adjustments (601 ) (287 ) 876 (589 ) (601 ) Net gain on intra-entity foreign currency transactions, net of tax (2,998 ) (708 ) (2,949 ) 3,657 (2,998 ) Other comprehensive income (loss) (3,599 ) (995 ) (2,073 ) 3,068 (3,599 ) Comprehensive income (loss) $ (57,886 ) $ 44,278 $ 11,024 $ (55,302 ) $ (57,886 )
Condensed Consolidating Statement of Cash Flows	Condensed Consolidating Statement of Cash Flows Six Months Ended July 30, 2016 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (70,835 ) $ 48,499 $ 1,525 $ (50,024 ) $ (70,835 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Loss (equity) in earnings of subsidiaries (51,618 ) 1,594 — 50,024 — Depreciation and amortization 480 15,857 11,519 — 27,856 Amortization of lease rights and other assets — — 1,371 — 1,371 Amortization of debt issuance costs 4,052 — 170 — 4,222 Accretion of debt premium (1,339 ) — — — (1,339 ) Non-cash in kind interest expense 9,156 — — — 9,156 Net accretion of unfavorable lease obligations — (125 ) (1 ) — (126 ) Loss on sale/retirement of property and equipment, net — 165 5 — 170 Stock-based compensation expense (benefit) (13 ) — 10 — (3 ) (Increase) decrease in: Inventories — 5,002 (6,145 ) — (1,143 ) Prepaid expenses (839 ) (166 ) (2,046 ) — (3,051 ) Other assets 17 105 (403 ) — (281 ) Increase (decrease) in: Trade accounts payable (1,054 ) (5,703 ) 769 — (5,988 ) Income taxes payable — (264 ) 223 — (41 ) Accrued interest payable 262 — 22 — 284 Accrued expenses and other liabilities (124 ) (6,524 ) (5,349 ) — (11,997 ) Deferred income taxes — — (545 ) — (545 ) Deferred rent expense — (973 ) (240 ) — (1,213 ) Net cash provided by (used in) operating activities (111,855 ) 57,467 885 — (53,503 ) Cash flows from investing activities: Acquisition of property and equipment (389 ) (5,058 ) (3,076 ) — (8,523 ) Acquisition of intangible assets/lease rights — (23 ) (80 ) — (103 ) Net cash used in investing activities (389 ) (5,081 ) (3,156 ) — (8,626 ) Cash flows from financing activities: Proceeds from revolving credit facilities 68,000 — 52,618 — 120,618 Payments on revolving credit facilities — — — — — Payment of debt issuance costs (25 ) — (54 ) — (79 ) Principal payments on capital lease — (116 ) — — (116 ) Intercompany activity, net 74,903 (54,661 ) (20,242 ) — — Net cash provided by (used in) financing activities 142,878 (54,777 ) 32,322 — 120,423 Effect of foreign currency exchange rate changes on cash and cash equivalents — 3,641 (5,534 ) — (1,893 ) Net increase in cash and cash equivalents 30,634 1,250 24,517 — 56,401 Cash and cash equivalents, at beginning of period 2,664 3,394 12,813 — 18,871 Cash and cash equivalents, at end of period $ 33,298 $ 4,644 $ 37,330 $ — $ 75,272 Condensed Consolidating Statement of Cash Flows Six Months Ended August 1, 2015 (in thousands) Non- Issuer Guarantors Guarantors Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (54,287 ) $ 45,273 $ 13,097 $ (58,370 ) $ (54,287 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in earnings of subsidiaries (59,659 ) 1,289 — 58,370 — Depreciation and amortization 412 17,523 12,253 — 30,188 Amortization of lease rights and other assets — — 1,551 — 1,551 Amortization of debt issuance costs 3,952 — 132 — 4,084 Accretion of debt premium (1,229 ) — — — (1,229 ) Net accretion of unfavorable lease obligations — (182 ) (7 ) — (189 ) Loss on sale/retirement of property and equipment, net — 248 — — 248 Gain on sale of intangible assets/lease rights — — (1,596 ) — (1,596 ) Stock-based compensation benefit (514 ) — (47 ) — (561 ) (Increase) decrease in: Inventories — (15,641 ) (10,026 ) — (25,667 ) Prepaid expenses (535 ) 103 (1,104 ) — (1,536 ) Other assets (32 ) (2,320 ) (2,136 ) — (4,488 ) Increase (decrease) in: Trade accounts payable (1,673 ) 3,051 10,135 — 11,513 Income taxes payable — (344 ) 2,153 — 1,809 Accrued interest payable 289 — (213 ) — 76 Accrued expenses and other liabilities (1,145 ) (1,869 ) (2,500 ) — (5,514 ) Deferred income taxes — — (134 ) — (134 ) Deferred rent expense — 97 2,835 — 2,932 Net cash provided by (used in) operating activities (114,421 ) 47,228 24,393 — (42,800 ) Cash flows from investing activities: Acquisition of property and equipment (427 ) (8,738 ) (5,214 ) — (14,379 ) Acquisition of intangible assets/lease rights — (25 ) (102 ) — (127 ) Proceeds from sale of intangible assets/lease rights — — 1,736 — 1,736 Net cash used in investing activities (427 ) (8,763 ) (3,580 ) — (12,770 ) Cash flows from financing activities: Proceeds from revolving credit facilities 156,300 — 93,898 — 250,198 Payments on revolving credit facilities (45,000 ) — (93,898 ) — (138,898 ) Payment of debt issuance costs — — (82 ) — (82 ) Principal payments on capital lease — (81 ) — — (81 ) Intercompany activity, net 35,848 (35,414 ) (434 ) — — Net cash provided by (used in) financing activities 147,148 (35,495 ) (516 ) — 111,137 Effect of foreign currency exchange rate changes on cash and cash equivalents — (1,529 ) 1,203 — (326 ) Net increase in cash and cash equivalents 32,300 1,441 21,500 — 55,241 Cash and cash equivalents, at beginning of period 3,480 4,009 19,897 — 27,386 Cash and cash equivalents, at end of period 35,780 5,450 41,397 — 82,627 Restricted cash, at end of period — — 336 — 336 Cash and cash equivalents and restricted cash, at end of period $ 35,780 $ 5,450 $ 41,733 $ — $ 82,963

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	Jul. 30, 2016	Jan. 30, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term debt including current portion, fair value excluding unamortized debt issuance costs	$ 1,030	$ 1,040
Long term debt including current portion, carrying value excluding unamortized debt issuance costs	$ 2,380	$ 2,370

Components of Debt (Detail)

Components of Debt (Detail) - USD ($) $ in Thousands		Jul. 30, 2016	Jan. 30, 2016
Debt Instrument [Line Items]
Debt instrument carrying amount		$ 2,380,000	$ 2,370,000
Total revolving credit facilities		158,367	41,059
Unamortized debt issuance cost, current		(611)
Total current portion of long-term debt		268,157
Unamortized debt issuance cost, non current		(18,605)	(22,894)
Total long-term debt		2,094,410	2,351,072
Obligation under capital lease (including current portion)		16,839	16,954
10.5% Senior subordinated notes due 2017
Debt Instrument [Line Items]
Debt instrument carrying amount, current		85,212
Debt instrument carrying amount, non current			259,612
9.0% Senior secured first lien notes due 2019
Debt Instrument [Line Items]
Debt instrument carrying amount, non current	[1]	1,133,015	1,134,354
8.875% Senior secured second lien notes due 2019
Debt Instrument [Line Items]
Debt instrument carrying amount, non current		450,000	450,000
6.125% Senior secured first lien notes due 2020
Debt Instrument [Line Items]
Debt instrument carrying amount, non current		210,000	210,000
7.75% Senior notes due 2020
Debt Instrument [Line Items]
Debt instrument carrying amount, non current		320,000	320,000
PIK Senior Subordinated Notes Due 2017
Debt Instrument [Line Items]
Debt instrument carrying amount, current		183,556
Senior secured revolving credit facility due 2017 | U.S. Credit Facility
Debt Instrument [Line Items]
Debt instrument carrying amount		110,200	42,200
Unsecured revolving credit facility due 2017 | Europe Credit Facility
Debt Instrument [Line Items]
Debt instrument carrying amount		49,339
Senior secured and unsecured revolving credit facility due 2017 | U.S. and Europe Credit Facility
Debt Instrument [Line Items]
Unamortized debt issuance cost		$ (1,172)	$ (1,141)
[1]	Amount includes unamortized premium of $8,015 and $9,354 as of July 30, 2016 and January 30, 2016, respectively.

Components of Debt (Parenthetic

Components of Debt (Parenthetical) (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jul. 30, 2016	Jan. 30, 2016	Jul. 15, 2015
10.5% Senior subordinated notes due 2017
Debt Instrument [Line Items]
Long-term Debt, interest rate	10.50%	10.50%
Long-term Debt, due date	2,017	2,017
9.0% Senior secured first lien notes due 2019
Debt Instrument [Line Items]
Long-term Debt, interest rate	9.00%	9.00%
Long-term Debt, due date	2,019	2,019
Unamortized premium	$ 8,015	$ 9,354
8.875% Senior secured second lien notes due 2019
Debt Instrument [Line Items]
Long-term Debt, interest rate	8.875%	8.875%
Long-term Debt, due date	2,019	2,019
6.125% Senior secured first lien notes due 2020
Debt Instrument [Line Items]
Long-term Debt, interest rate	6.125%	6.125%
Long-term Debt, due date	2,020	2,020
7.75% Senior notes due 2020
Debt Instrument [Line Items]
Long-term Debt, interest rate	7.75%	7.75%
Long-term Debt, due date	2,020	2,020
PIK Senior Subordinated Notes Due 2017
Debt Instrument [Line Items]
Long-term Debt, interest rate	10.50%
Long-term Debt, due date	2,017
Senior secured revolving credit facility due 2017 | U.S. Credit Facility
Debt Instrument [Line Items]
Revolving credit facility, due date	2,017	2,017
Unsecured revolving credit facility due 2017 | Europe Credit Facility
Debt Instrument [Line Items]
Revolving credit facility, due date	2,017
Long-term Debt, interest rate			2.50%

Debt - Additional Information (

Debt - Additional Information (Detail)	Jun. 01, 2016USD ($)	May 04, 2016USD ($)Agreement	Jul. 15, 2015USD ($)	Jul. 30, 2016USD ($)	Jan. 30, 2016
Debt Instrument [Line Items]
Number of exchange agreements | Agreement		2
Exchange agreements, commencement date		May 4, 2016
Payment of in kind interest expense				$ 9,156,000
U.S. Credit Facility | Senior secured revolving credit facility due 2017
Debt Instrument [Line Items]
Credit facilities borrowing capacity				115,000,000
Outstanding letters of credit				$ 15,000,000
U.S. Credit Facility | Senior secured revolving credit facility due 2017 | Ratio commencing with the third quarter of Fiscal 2015 through 2016, except the fourth quarter of 2015 and 2016
Debt Instrument [Line Items]
Total Net Secured Leverage Ratio				675.00%
U.S. Credit Facility | Senior secured revolving credit facility due 2017 | Ratio applicable for the fourth quarter of Fiscal 2015 and 2016
Debt Instrument [Line Items]
Total Net Secured Leverage Ratio				635.00%
Senior Subordinated Notes10.5% Senior subordinated notes due 2017
Debt Instrument [Line Items]
Long-term Debt, interest rate				10.50%
Long-term Debt, due date				2,017
8.875% Senior secured second lien notes due 2019
Debt Instrument [Line Items]
Long-term Debt, interest rate				8.875%	8.875%
Long-term Debt, due date				2,019	2,019
9.0% Senior secured first lien notes due 2019
Debt Instrument [Line Items]
Long-term Debt, interest rate				9.00%	9.00%
Long-term Debt, due date				2,019	2,019
6.125% Senior secured first lien notes due 2020
Debt Instrument [Line Items]
Long-term Debt, interest rate				6.125%	6.125%
Long-term Debt, due date				2,020	2,020
7.75% Senior notes due 2020
Debt Instrument [Line Items]
Long-term Debt, interest rate				7.75%	7.75%
Long-term Debt, due date				2,020	2,020
Europe Credit Facility | Unsecured revolving credit facility due 2017
Debt Instrument [Line Items]
Long-term Debt, interest rate			2.50%
Revolving credit facilities, interest rate terms				Interest at 2.50% per annum plus the Euro Interbank Offered Rate as in effect for interest periods of one, three or six months or any other period agreed upon.
Long-term Debt, maturity date			Aug. 20, 2017
Revolving credit facilities			$ 50,000,000
Revolving credit facilities, amended date			Jul. 15, 2015
Revolving credit facilities, percentage of unused facility amount payable as facility fee			0.875%
Covenant				The Europe Credit Facility contains customary affirmative and negative covenants applicable to Claire's Gibraltar and its subsidiaries, events of default and provisions relating to mandatory and voluntary payments, which include an annual requirement that for at least five successive Business Days in each year no loans under the Europe Credit Facility may be outstanding. The Europe Credit Facility also contains covenants that require Claire's Gibraltar to maintain particular financial ratios so long as any amounts are outstanding under the facility a Fixed Charge Cover Ratio not lower than 1.5:1.0 based upon the ratio of adjusted earnings before interest, taxes, depreciation, amortization, and rent to net interest and rent for each period of four consecutive fiscal quarters and a Leverage Ratio not more than 1.5:1.0 based upon the ratio of net debt to adjusted earnings before interest, taxes, depreciation and amortization for each period of four consecutive fiscal quarters.
Europe Credit Facility | Unsecured revolving credit facility due 2017 | Minimum
Debt Instrument [Line Items]
Number of successive business days required			5 days
Fixed Charge Cover Ratio			150.00%
Europe Credit Facility | Unsecured revolving credit facility due 2017 | Maximum
Debt Instrument [Line Items]
Leverage Ratio			150.00%
Europe Bank Credit Facilities
Debt Instrument [Line Items]
Credit facilities borrowing capacity				$ 2,300,000
Reduction in indebtedness under credit facility				2,100,000
Line Of Credit Facility Remaining Borrowing Capacity				$ 200,000
10.5% Senior subordinated notes due 2017
Debt Instrument [Line Items]
Long-term Debt, interest rate				10.50%	10.50%
Long-term Debt, due date				2,017	2,017
Debt instrument, interest payment term				Semi-annually in June and December
Long-term Debt, maturity date		Jun. 1, 2017
10.5% Senior subordinated notes due 2017 | Debt Exchanged
Debt Instrument [Line Items]
Principal amount of senior notes		$ 174,400,000
Long-term Debt, interest rate		10.50%
Long-term Debt, due date		2,017
PIK Senior Subordinated Notes Due 2017
Debt Instrument [Line Items]
Long-term Debt, interest rate				10.50%
Long-term Debt, due date				2,017
Revolving credit facilities, interest rate terms				The terms of the New PIK Subordinated Notes are substantially the same as those of the Existing Subordinated Notes except that interest, which accrues at 10.5% per annum from December 1, 2015, will be paid-in-kind ("PIK") with respect to the June 1, 2016 interest payment and may be PIK, paid in cash or paid 50% cash/50% PIK with respect to the December 1, 2016 interest payment.
Debt instrument, interest payment term				Semi-annually in June and December
Long-term Debt, maturity date		Jun. 1, 2017
Payment of in kind interest expense	$ 9,200,000
PIK Senior Subordinated Notes Due 2017 | Debt Refinanced
Debt Instrument [Line Items]
Principal amount of senior notes		$ 174,400,000
Long-term Debt, interest rate		10.50%
Long-term Debt, due date		2,017

Components of Accumulated Other

Components of Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ (580,244)
Other comprehensive income	$ (8,725)	$ (4,063)	4,330	$ (3,599)
Ending balance	(646,752)		(646,752)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(54,971)
Other comprehensive income			4,330
Ending balance	(50,641)		(50,641)
Derivative Instrument
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			5,732
Ending balance	5,732		5,732
Accumulated Other Comprehensive Income (Loss), Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(49,239)
Ending balance	$ (44,909)		$ (44,909)

Summary of Activity in Stock Op

Summary of Activity in Stock Option Plan (Detail)	6 Months Ended
	Jul. 30, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding as of January 30, 2016 | shares	3,710,022
Options granted | shares	1,085,500
Options exercised | shares	0
Options forfeited | shares	(897,135)
Options expired | shares	(309,595)
Outstanding as of July 30, 2016 | shares	3,588,792
Options vested and expected to vest as of July 30, 2016 | shares	3,328,970
Exercisable as of July 30, 2016 | shares	1,902,149
Outstanding as of January 30, 2016, Weighted-Average Exercise Price | $ / shares	$ 9.43
Options granted, Weighted-Average Exercise Price | $ / shares	1.26
Options exercised, Weighted-Average Exercise Price | $ / shares	0
Options forfeited, Weighted-Average Exercise Price | $ / shares	9.07
Options expired, Weighted-Average Exercise Price | $ / shares	10
Outstanding as of July 30, 2016 | $ / shares	6.99
Options vested and expected to vest as of July 30, 2016, Weighted-Average Exercise Price | $ / shares	7.19
Exercisable as of July 30, 2016, Weighted-Average Exercise Price | $ / shares	$ 8.88
Outstanding as of July 30, 2016, Weighted Average Remaining Contractual Term	4 years 3 months 18 days
Options vested and expected to vest as of July 30, 2016, Weighted Average Remaining Contractual Term	4 years 1 month 6 days
Exercisable as of July 30, 2016, Weighted Average Remaining Contractual Term	3 years

Stock Options and Stock-Based30

Stock Options and Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value of options granted			$ 0.32	$ 0.51
Stock-based compensation expense (benefit)			$ (3)	$ (561)
Reversal of stock compensation expense	$ 100		200
Former Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reversal of stock compensation expense	100		100
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense (benefit)	$ 0	$ 0	$ 100	$ (600)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Income Tax Disclosure [Line Items]
Effective income tax rate	(3.80%)	(15.40%)	0.20%	(4.90%)
U.S. income taxes at statutory federal rate	35.00%	35.00%	35.00%	35.00%

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 01, 2016	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015	Jan. 30, 2016
Related Party Transaction [Line Items]
Indebtedness held by Parent and affiliates		$ 242,300		$ 242,300		$ 233,000
Accrued interest payable associated with indebtedness held by parent and affiliates		16,400		16,400		$ 4,000
Interest expense related to indebtedness held by Parent and affiliates		$ 6,300	$ 5,700	12,400	$ 11,400
Payment of in kind interest expense				$ 9,156
PIK Senior Subordinated Notes Due 2017
Related Party Transaction [Line Items]
Payment of in kind interest expense	$ 9,200

Segment Information - Additiona

Segment Information - Additional Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016USD ($)	Aug. 01, 2015USD ($)	Jul. 30, 2016USD ($)Segment	Aug. 01, 2015USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Segment			2
Severance and transaction-related costs	$ 125	$ 420	$ 1,698	$ 827
North America
Segment Reporting Information [Line Items]
Severance and transaction-related costs	0	200	1,300	400
Europe
Segment Reporting Information [Line Items]
Severance and transaction-related costs	$ 100	$ 200	$ 400	$ 400

Net Sales, Depreciation and Amo

Net Sales, Depreciation and Amortization and Operating Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Segment Reporting Information [Line Items]
Net sales	$ 317,172	$ 347,587	$ 616,819	$ 667,582
Depreciation and amortization	13,796	15,634	27,856	30,188
Severance and transaction-related costs	125	420	1,698	827
Operating income	24,734	38,694	39,728	57,718
Interest expense, net	55,623	55,044	110,702	109,464
Consolidated loss before income tax expense	(30,889)	(16,350)	(70,974)	(51,746)
Operating Segments
Segment Reporting Information [Line Items]
Operating income	24,859	39,114	41,426	58,545
North America
Segment Reporting Information [Line Items]
Net sales	194,774	210,567	394,080	416,295
Depreciation and amortization	8,337	10,166	17,432	19,359
Severance and transaction-related costs	0	200	1,300	400
North America | Operating Segments
Segment Reporting Information [Line Items]
Operating income	16,184	24,870	40,755	44,455
Europe
Segment Reporting Information [Line Items]
Net sales	122,398	137,020	222,739	251,287
Depreciation and amortization	5,459	5,468	10,424	10,829
Severance and transaction-related costs	100	200	400	400
Europe | Operating Segments
Segment Reporting Information [Line Items]
Operating income	$ 8,675	$ 14,244	$ 671	$ 14,090

Supplemental Financial Inform35

Supplemental Financial Information - Additional Information (Detail) - Issuer	Jul. 30, 2016	May 14, 2013	Mar. 15, 2013	Sep. 20, 2012	Mar. 12, 2012	Feb. 28, 2012
Debt Instrument [Line Items]
Percentage of ownership of domestic subsidiaries	100.00%
2012 Notes
Debt Instrument [Line Items]
Long-term Debt, interest rate				9.00%	9.00%	9.00%
2013 Notes
Debt Instrument [Line Items]
Long-term Debt, interest rate		7.75%	6.125%

Condensed Consolidating Balance

Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016	Aug. 01, 2015	Jan. 31, 2015
Current assets:
Cash and cash equivalents	$ 75,272	$ 18,871	$ 82,627	$ 27,386
Inventories	153,614	151,954
Prepaid expenses	17,904	15,676
Other current assets	24,676	26,254
Total current assets	271,466	212,755
Property and equipment:
Furniture, fixtures and equipment	243,940	245,954
Leasehold improvements	308,220	310,021
Total property and equipment	552,160	555,975
Accumulated depreciation and amortization	(395,236)	(383,334)
Total property and equipment, net	156,924	172,641
Leased property under capital lease:
Land and building	18,055	18,055
Accumulated depreciation and amortization	(5,862)	(5,416)
Total leased property under capital lease	12,193	12,639
Goodwill	1,301,922	1,301,922
Intangible assets, net	469,141	470,227
Other assets	45,980	43,371
Total other noncurrent assets	1,817,043	1,815,520
Total assets	2,257,626	2,213,555
Current liabilities:
Revolving credit facilities	158,367	41,059
Current portion of long-term debt	268,157
Trade accounts payable	67,339	73,133
Income taxes payable	4,335	6,165
Accrued interest payable	68,263	67,984
Accrued expenses and other current liabilities	77,259	85,225
Total current liabilities	643,720	273,566
Long-term debt	2,094,410	2,351,072
Obligation under capital lease	16,557	16,712
Deferred tax liability	102,989	103,309
Deferred rent expense	35,001	36,144
Unfavorable lease obligations and other long-term liabilities	11,701	12,996
Total Non current liabilities	2,260,658	2,520,233
Stockholder's equity (deficit):
Common stock	0	0
Additional paid in capital	618,828	618,831
Accumulated other comprehensive income (loss), net of tax	(44,909)	(49,239)
Accumulated deficit	(1,220,671)	(1,149,836)
Total stockholder's deficit	(646,752)	(580,244)
Total liabilities and stockholder's deficit	2,257,626	2,213,555
Issuer
Current assets:
Cash and cash equivalents	33,298	2,664	35,780	3,480
Prepaid expenses	1,182	344
Total current assets	34,480	3,008
Property and equipment:
Furniture, fixtures and equipment	5,926	5,537
Leasehold improvements	1,315	1,315
Total property and equipment	7,241	6,852
Accumulated depreciation and amortization	(4,935)	(4,455)
Total property and equipment, net	2,306	2,397
Leased property under capital lease:
Investment in subsidiaries	1,834,608	1,836,079
Intangible assets, net	257,000	257,000
Other assets	3,443	486
Total other noncurrent assets	2,095,051	2,093,565
Total assets	2,131,837	2,098,970
Current liabilities:
Revolving credit facilities	109,407	41,059
Current portion of long-term debt	268,157
Trade accounts payable	(413)	642
Accrued interest payable	68,211	67,948
Accrued expenses and other current liabilities	8,508	5,657
Total current liabilities	453,870	115,306
Intercompany payables	230,309	212,836
Long-term debt	2,094,410	2,351,072
Total Non current liabilities	2,324,719	2,563,908
Stockholder's equity (deficit):
Additional paid in capital	618,828	618,831
Accumulated other comprehensive income (loss), net of tax	(44,909)	(49,239)
Accumulated deficit	(1,220,671)	(1,149,836)
Total stockholder's deficit	(646,752)	(580,244)
Total liabilities and stockholder's deficit	2,131,837	2,098,970
Guarantors
Current assets:
Cash and cash equivalents	4,644	3,394	5,450	4,009
Inventories	89,012	94,014
Prepaid expenses	1,652	1,485
Other current assets	15,601	16,023
Total current assets	110,909	114,916
Property and equipment:
Furniture, fixtures and equipment	158,918	160,128
Leasehold improvements	188,953	191,085
Total property and equipment	347,871	351,213
Accumulated depreciation and amortization	(259,589)	(252,181)
Total property and equipment, net	88,282	99,032
Leased property under capital lease:
Land and building	18,055	18,055
Accumulated depreciation and amortization	(5,862)	(5,416)
Total leased property under capital lease	12,193	12,639
Intercompany receivables	224,498	169,836
Investment in subsidiaries	(46,111)	(43,436)
Goodwill	987,517	987,517
Intangible assets, net	443	671
Other assets	4,939	3,507
Total other noncurrent assets	1,171,286	1,118,095
Total assets	1,382,670	1,344,682
Current liabilities:
Trade accounts payable	21,945	27,930
Income taxes payable	5	228
Accrued expenses and other current liabilities	34,308	39,834
Total current liabilities	56,258	67,992
Obligation under capital lease	16,557	16,712
Deferred tax liability	94,700	93,626
Deferred rent expense	23,842	24,815
Unfavorable lease obligations and other long-term liabilities	11,694	12,977
Total Non current liabilities	146,793	148,130
Stockholder's equity (deficit):
Common stock	367	367
Additional paid in capital	1,435,909	1,435,909
Accumulated other comprehensive income (loss), net of tax	(4,831)	(7,390)
Accumulated deficit	(251,826)	(300,326)
Total stockholder's deficit	1,179,619	1,128,560
Total liabilities and stockholder's deficit	1,382,670	1,344,682
Non-Guarantors
Current assets:
Cash and cash equivalents	37,330	12,813	$ 41,397	$ 19,897
Inventories	64,602	57,940
Prepaid expenses	15,070	13,847
Other current assets	9,075	10,231
Total current assets	126,077	94,831
Property and equipment:
Furniture, fixtures and equipment	79,096	80,289
Leasehold improvements	117,952	117,621
Total property and equipment	197,048	197,910
Accumulated depreciation and amortization	(130,712)	(126,698)
Total property and equipment, net	66,336	71,212
Leased property under capital lease:
Intercompany receivables	5,811	43,000
Goodwill	314,405	314,405
Intangible assets, net	211,698	212,556
Other assets	37,598	39,378
Total other noncurrent assets	569,512	609,339
Total assets	761,925	775,382
Current liabilities:
Revolving credit facilities	48,960
Trade accounts payable	45,807	44,561
Income taxes payable	4,330	5,937
Accrued interest payable	52	36
Accrued expenses and other current liabilities	34,443	39,734
Total current liabilities	133,592	90,268
Deferred tax liability	8,289	9,683
Deferred rent expense	11,159	11,329
Unfavorable lease obligations and other long-term liabilities	7	19
Total Non current liabilities	19,455	21,031
Stockholder's equity (deficit):
Common stock	2	2
Additional paid in capital	797,656	797,656
Accumulated other comprehensive income (loss), net of tax	(40,536)	(41,341)
Accumulated deficit	(148,244)	(92,234)
Total stockholder's deficit	608,878	664,083
Total liabilities and stockholder's deficit	761,925	775,382
Eliminations
Leased property under capital lease:
Intercompany receivables	(230,309)	(212,836)
Investment in subsidiaries	(1,788,497)	(1,792,643)
Total other noncurrent assets	(2,018,806)	(2,005,479)
Total assets	(2,018,806)	(2,005,479)
Current liabilities:
Intercompany payables	(230,309)	(212,836)
Total Non current liabilities	(230,309)	(212,836)
Stockholder's equity (deficit):
Common stock	(369)	(369)
Additional paid in capital	(2,233,565)	(2,233,565)
Accumulated other comprehensive income (loss), net of tax	45,367	48,731
Accumulated deficit	400,070	392,560
Total stockholder's deficit	(1,788,497)	(1,792,643)
Total liabilities and stockholder's deficit	$ (2,018,806)	$ (2,005,479)

Condensed Consolidating Stateme

Condensed Consolidating Statement of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Net sales	$ 317,172	$ 347,587	$ 616,819	$ 667,582
Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below)	170,683	179,076	329,036	351,928
Gross profit (deficit)	146,489	168,511	287,783	315,654
Other expenses:
Selling, general and administrative	112,372	116,369	220,094	229,387
Depreciation and amortization	13,796	15,634	27,856	30,188
Severance and transaction-related costs	125	420	1,698	827
Other (income) expense	(4,538)	(2,606)	(1,593)	(2,466)
Total other expenses	121,755	129,817	248,055	257,936
Operating income (loss)	24,734	38,694	39,728	57,718
Interest expense, net	55,623	55,044	110,702	109,464
Income (loss) before income taxes	(30,889)	(16,350)	(70,974)	(51,746)
Income tax expense (benefit)	1,188	2,519	(139)	2,541
Income (loss) from continuing operations	(32,077)	(18,869)	(70,835)	(54,287)
Net income (loss)	(32,077)	(18,869)	(70,835)	(54,287)
Foreign currency translation adjustments	(2,340)	(516)	520	(601)
Net gain (loss) on intra-entity foreign currency transactions, net of tax	(6,385)	(3,547)	3,810	(2,998)
Other comprehensive income (loss)	(8,725)	(4,063)	4,330	(3,599)
Comprehensive income (loss)	(40,802)	(22,932)	(66,505)	(57,886)
Issuer
Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below)	2,861	29	5,586	82
Gross profit (deficit)	(2,861)	(29)	(5,586)	(82)
Other expenses:
Selling, general and administrative	4,794	3,583	9,565	6,220
Depreciation and amortization	243	211	480	412
Severance and transaction-related costs	1	226	1,349	361
Other (income) expense	(2,102)	(1,657)	(3,513)	(1,018)
Total other expenses	2,936	2,363	7,881	5,975
Operating income (loss)	(5,797)	(2,392)	(13,467)	(6,057)
Interest expense, net	54,717	54,261	108,986	107,889
Income (loss) before income taxes	(60,514)	(56,653)	(122,453)	(113,946)
Income (loss) from continuing operations	(60,514)	(56,653)	(122,453)	(113,946)
Equity in earnings (loss) of subsidiaries	28,437	37,784	51,618	59,659
Net income (loss)	(32,077)	(18,869)	(70,835)	(54,287)
Foreign currency translation adjustments	(2,340)	(516)	520	(601)
Net gain (loss) on intra-entity foreign currency transactions, net of tax	(6,385)	(3,547)	3,810	(2,998)
Other comprehensive income (loss)	(8,725)	(4,063)	4,330	(3,599)
Comprehensive income (loss)	(40,802)	(22,932)	(66,505)	(57,886)
Guarantors
Net sales	179,775	194,689	365,799	387,197
Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below)	94,245	100,824	185,497	203,001
Gross profit (deficit)	85,530	93,865	180,302	184,196
Other expenses:
Selling, general and administrative	58,211	60,669	113,624	120,126
Depreciation and amortization	7,543	9,210	15,857	17,523
Severance and transaction-related costs		3	(3)	3
Other (income) expense	398	152	414	(615)
Total other expenses	66,152	70,034	129,892	137,037
Operating income (loss)	19,378	23,831	50,410	47,159
Interest expense, net	553	549	1,093	1,092
Income (loss) before income taxes	18,825	23,282	49,317	46,067
Income tax expense (benefit)	563	696	(776)	(495)
Income (loss) from continuing operations	18,262	22,586	50,093	46,562
Equity in earnings (loss) of subsidiaries	70	366	(1,594)	(1,289)
Net income (loss)	18,332	22,952	48,499	45,273
Foreign currency translation adjustments	(548)	(689)	938	(287)
Net gain (loss) on intra-entity foreign currency transactions, net of tax	(768)	(1,850)	1,621	(708)
Other comprehensive income (loss)	(1,316)	(2,539)	2,559	(995)
Comprehensive income (loss)	17,016	20,413	51,058	44,278
Non-Guarantors
Net sales	137,397	152,898	251,020	280,385
Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below)	73,577	78,223	137,953	148,845
Gross profit (deficit)	63,820	74,675	113,067	131,540
Other expenses:
Selling, general and administrative	49,367	52,117	96,905	103,041
Depreciation and amortization	6,010	6,213	11,519	12,253
Severance and transaction-related costs	124	191	352	463
Other (income) expense	(2,834)	(1,101)	1,506	(833)
Total other expenses	52,667	57,420	110,282	114,924
Operating income (loss)	11,153	17,255	2,785	16,616
Interest expense, net	353	234	623	483
Income (loss) before income taxes	10,800	17,021	2,162	16,133
Income tax expense (benefit)	625	1,823	637	3,036
Income (loss) from continuing operations	10,175	15,198	1,525	13,097
Net income (loss)	10,175	15,198	1,525	13,097
Foreign currency translation adjustments	(253)	3,321	(2,959)	876
Net gain (loss) on intra-entity foreign currency transactions, net of tax	(6,514)	(3,482)	3,764	(2,949)
Other comprehensive income (loss)	(6,767)	(161)	805	(2,073)
Comprehensive income (loss)	3,408	15,037	2,330	11,024
Eliminations
Other expenses:
Equity in earnings (loss) of subsidiaries	(28,507)	(38,150)	(50,024)	(58,370)
Net income (loss)	(28,507)	(38,150)	(50,024)	(58,370)
Foreign currency translation adjustments	801	(2,632)	2,021	(589)
Net gain (loss) on intra-entity foreign currency transactions, net of tax	7,282	5,332	(5,385)	3,657
Other comprehensive income (loss)	8,083	2,700	(3,364)	3,068
Comprehensive income (loss)	$ (20,424)	$ (35,450)	$ (53,388)	$ (55,302)

Condensed Consolidating State38

Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Cash flows from operating activities:
Net income (loss)	$ (32,077)	$ (18,869)	$ (70,835)	$ (54,287)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	13,796	15,634	27,856	30,188
Amortization of lease rights and other assets			1,371	1,551
Amortization of debt issuance costs			4,222	4,084
Accretion of debt premium			(1,339)	(1,229)
Non-cash in kind interest expense			9,156
Net accretion of unfavorable lease obligations			(126)	(189)
Loss on sale/retirement of property and equipment, net			170	248
Gain on sale of intangible assets/lease rights				(1,596)
Stock-based compensation expense (benefit)			(3)	(561)
(Increase) decrease in:
Inventories			(1,143)	(25,667)
Prepaid expenses			(3,051)	(1,536)
Other assets			(281)	(4,488)
Increase (decrease) in:
Trade accounts payable			(5,988)	11,513
Income taxes payable			(41)	1,809
Accrued interest payable			284	76
Accrued expenses and other liabilities			(11,997)	(5,514)
Deferred income taxes			(545)	(134)
Deferred rent expense			(1,213)	2,932
Net cash provided by (used in) operating activities			(53,503)	(42,800)
Cash flows from investing activities:
Acquisition of property and equipment			(8,523)	(14,379)
Acquisition of intangible assets/lease rights			(103)	(127)
Proceeds from sale of intangible assets/lease rights				1,736
Net cash used in investing activities			(8,626)	(12,770)
Cash flows from financing activities:
Proceeds from revolving credit facilities			120,618	250,198
Payments on revolving credit facilities				(138,898)
Payment of debt issuance costs			(79)	(82)
Principal payments on capital lease			(116)	(81)
Net cash provided by (used in) financing activities			120,423	111,137
Effect of foreign currency exchange rate changes on cash and cash equivalents			(1,893)	(326)
Net increase in cash and cash equivalents			56,401	55,241
Cash and cash equivalents, at beginning of period			18,871	27,386
Cash and cash equivalents, at end of period	75,272	82,627	75,272	82,627
Restricted cash, at end of period		336		336
Cash and cash equivalents and restricted cash, at end of period	75,272	82,963	75,272	82,963
Issuer
Cash flows from operating activities:
Net income (loss)	(32,077)	(18,869)	(70,835)	(54,287)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Loss (equity) in earnings of subsidiaries	(28,437)	(37,784)	(51,618)	(59,659)
Depreciation and amortization	243	211	480	412
Amortization of debt issuance costs			4,052	3,952
Accretion of debt premium			(1,339)	(1,229)
Non-cash in kind interest expense			9,156
Stock-based compensation expense (benefit)			(13)	(514)
(Increase) decrease in:
Prepaid expenses			(839)	(535)
Other assets			17	(32)
Increase (decrease) in:
Trade accounts payable			(1,054)	(1,673)
Accrued interest payable			262	289
Accrued expenses and other liabilities			(124)	(1,145)
Net cash provided by (used in) operating activities			(111,855)	(114,421)
Cash flows from investing activities:
Acquisition of property and equipment			(389)	(427)
Net cash used in investing activities			(389)	(427)
Cash flows from financing activities:
Proceeds from revolving credit facilities			68,000	156,300
Payments on revolving credit facilities				(45,000)
Payment of debt issuance costs			(25)
Intercompany activity, net			74,903	35,848
Net cash provided by (used in) financing activities			142,878	147,148
Net increase in cash and cash equivalents			30,634	32,300
Cash and cash equivalents, at beginning of period			2,664	3,480
Cash and cash equivalents, at end of period	33,298	35,780	33,298	35,780
Cash and cash equivalents and restricted cash, at end of period		35,780		35,780
Guarantors
Cash flows from operating activities:
Net income (loss)	18,332	22,952	48,499	45,273
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Loss (equity) in earnings of subsidiaries	(70)	(366)	1,594	1,289
Depreciation and amortization	7,543	9,210	15,857	17,523
Net accretion of unfavorable lease obligations			(125)	(182)
Loss on sale/retirement of property and equipment, net			165	248
(Increase) decrease in:
Inventories			5,002	(15,641)
Prepaid expenses			(166)	103
Other assets			105	(2,320)
Increase (decrease) in:
Trade accounts payable			(5,703)	3,051
Income taxes payable			(264)	(344)
Accrued expenses and other liabilities			(6,524)	(1,869)
Deferred rent expense			(973)	97
Net cash provided by (used in) operating activities			57,467	47,228
Cash flows from investing activities:
Acquisition of property and equipment			(5,058)	(8,738)
Acquisition of intangible assets/lease rights			(23)	(25)
Net cash used in investing activities			(5,081)	(8,763)
Cash flows from financing activities:
Principal payments on capital lease			(116)	(81)
Intercompany activity, net			(54,661)	(35,414)
Net cash provided by (used in) financing activities			(54,777)	(35,495)
Effect of foreign currency exchange rate changes on cash and cash equivalents			3,641	(1,529)
Net increase in cash and cash equivalents			1,250	1,441
Cash and cash equivalents, at beginning of period			3,394	4,009
Cash and cash equivalents, at end of period	4,644	5,450	4,644	5,450
Cash and cash equivalents and restricted cash, at end of period		5,450		5,450
Non-Guarantors
Cash flows from operating activities:
Net income (loss)	10,175	15,198	1,525	13,097
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	6,010	6,213	11,519	12,253
Amortization of lease rights and other assets			1,371	1,551
Amortization of debt issuance costs			170	132
Net accretion of unfavorable lease obligations			(1)	(7)
Loss on sale/retirement of property and equipment, net			5
Gain on sale of intangible assets/lease rights				(1,596)
Stock-based compensation expense (benefit)			10	(47)
(Increase) decrease in:
Inventories			(6,145)	(10,026)
Prepaid expenses			(2,046)	(1,104)
Other assets			(403)	(2,136)
Increase (decrease) in:
Trade accounts payable			769	10,135
Income taxes payable			223	2,153
Accrued interest payable			22	(213)
Accrued expenses and other liabilities			(5,349)	(2,500)
Deferred income taxes			(545)	(134)
Deferred rent expense			(240)	2,835
Net cash provided by (used in) operating activities			885	24,393
Cash flows from investing activities:
Acquisition of property and equipment			(3,076)	(5,214)
Acquisition of intangible assets/lease rights			(80)	(102)
Proceeds from sale of intangible assets/lease rights				1,736
Net cash used in investing activities			(3,156)	(3,580)
Cash flows from financing activities:
Proceeds from revolving credit facilities			52,618	93,898
Payments on revolving credit facilities				(93,898)
Payment of debt issuance costs			(54)	(82)
Intercompany activity, net			(20,242)	(434)
Net cash provided by (used in) financing activities			32,322	(516)
Effect of foreign currency exchange rate changes on cash and cash equivalents			(5,534)	1,203
Net increase in cash and cash equivalents			24,517	21,500
Cash and cash equivalents, at beginning of period			12,813	19,897
Cash and cash equivalents, at end of period	37,330	41,397	37,330	41,397
Restricted cash, at end of period		336		336
Cash and cash equivalents and restricted cash, at end of period		41,733		41,733
Eliminations
Cash flows from operating activities:
Net income (loss)	(28,507)	(38,150)	(50,024)	(58,370)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Loss (equity) in earnings of subsidiaries	$ 28,507	$ 38,150	$ 50,024	$ 58,370

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($)	Sep. 16, 2016	Sep. 15, 2016	Aug. 12, 2016	May 04, 2016	Jul. 15, 2015	Aug. 01, 2015	Jul. 30, 2016	Jan. 30, 2016
Subsequent Event [Line Items]
Accrued interest payable							$ 68,263,000	$ 67,984,000
Payment to line of credit						$ 138,898,000
PIK Senior Subordinated Notes Due 2017
Subsequent Event [Line Items]
Long-term Debt, maturity date				Jun. 1, 2017
10.5% Senior subordinated notes due 2017
Subsequent Event [Line Items]
Long-term Debt, maturity date				Jun. 1, 2017
Europe Credit Facility | Unsecured revolving credit facility due 2017
Subsequent Event [Line Items]
Line of credit, maximum borrowing capacity					$ 50,000,000
Long-term Debt, maturity date					Aug. 20, 2017
Subsequent Event | Secured Notes
Subsequent Event [Line Items]
Event of default under the indentures		Non-payment of this interest would become an event of default under the indentures governing the Secured Notes only if the payment is not made within 30 days.
Accrued interest payable		$ 77,000,000
Interest payment period		30 days
Debt default threshold percentage of principal amount held		30.00%
Subsequent Event | 6.125% Senior secured first lien notes due 2020
Subsequent Event [Line Items]
Accrued interest payable		$ 10,000,000
Subsequent Event | U.S. Credit Facility
Subsequent Event [Line Items]
Long-term Debt, maturity date			Feb. 4, 2019
Line of credit, maximum borrowing capacity			$ 75,000,000
Payment to line of credit			40,000,000
Subsequent Event | Claire's Gibraltar Credit Facility
Subsequent Event [Line Items]
Line of credit, maximum borrowing capacity			$ 40,000,000
Long-term Debt, maturity date			Feb. 4, 2019
Subsequent Event | ABL Credit Facility | Revolving credit facilities
Subsequent Event [Line Items]
Long-term Debt, maturity date			Feb. 4, 2019
Line of credit, maximum borrowing capacity			$ 75,000,000
Line of credit, maximum borrowing capacity if Claire's Gibraltar Credit Facility not permitted			$ 115,000,000
Subsequent Event | Exchange Offer
Subsequent Event [Line Items]
Commencement date			Aug. 12, 2016
Minimum tender condition			$ 400,000,000
Debt outstanding	$ 575,000,000
Term loans exchanged	$ 179,000,000
Subsequent Event | Exchange Offer | Claire's Stores Term Loans
Subsequent Event [Line Items]
Line of credit, maximum borrowing capacity			40,000,000
Subsequent Event | Exchange Offer | CLSIP Term Loans
Subsequent Event [Line Items]
Line of credit, maximum borrowing capacity			130,000,000
Subsequent Event | Exchange Offer | Claire's Gibraltar Term Loans
Subsequent Event [Line Items]
Line of credit, maximum borrowing capacity			60,000,000
Subsequent Event | Exchange Offer | PIK Senior Subordinated Notes Due 2017 | Maximum
Subsequent Event [Line Items]
Principal amount of subordinated notes			183,600,000
Subsequent Event | Exchange Offer | 10.5% Senior subordinated notes due 2017 | Maximum
Subsequent Event [Line Items]
Principal amount of subordinated notes			$ 58,700,000