Alex and Ani is owned by a group of secured lenders led by London-based private equity firm Lion Capital LLP, which took control through a Chapter 11 bankruptcy reorganization completed in 2021. That process converted lender debt into equity and eliminated founder Carolyn Rafaelian’s remaining stake in the Rhode Island charm bracelet brand she started in 2004.
How Lion Capital Became the Controlling Owner
Lion Capital first bought into Alex and Ani in December 2014, acquiring a 40 percent stake from prior investor JH Partners for roughly $400 million. The deal valued the company at about $1 billion. Rafaelian kept majority ownership at that point and continued as CEO.
The balance shifted over the following years. Rafaelian gave up another 20 percent of her stake under circumstances tied to financial difficulties at the company, dropping her ownership to around 41 percent and pushing Lion Capital’s share to roughly 59 percent. By September 2019, she had stepped down as CEO. She moved into a chief creative officer role, then was fired from that position in May 2020.
What the 2021 Bankruptcy Did to Ownership
Alex and Ani filed for Chapter 11 protection on June 9, 2021, in the U.S. Bankruptcy Court for the District of Delaware, listing between $100 million and $500 million in both assets and liabilities. The plan initially contemplated selling the company through an auction. When no outside bids materialized, the company moved forward with a debt-for-equity swap that handed ownership to its secured creditors.
Under that arrangement, lenders holding the company’s debt exchanged what they were owed for equity in the reorganized business. This is a standard outcome in Chapter 11 cases where the debtor’s assets are worth less than what creditors are owed, leaving nothing for existing equity holders.1Office of the Law Revision Counsel. 11 U.S. Code Chapter 11 – Reorganization The bankruptcy court approved the plan, and the company emerged from Chapter 11 later that year.
The Current Ownership Split
The reorganized Alex and Ani is owned by its former secured lenders, with Lion Capital holding the largest share. Because Lion Capital was itself a major creditor, it ended up on both sides of the transaction: already the largest equity holder before bankruptcy, and also part of the lending syndicate that received new equity through the swap. Bank of America and Wilmington Trust served as administrators for the different lender syndicates that took ownership.
An entity called Bathing Club LLC also plays a role in the current structure. Despite what some earlier reporting suggested, Bathing Club is not a Lion Capital subsidiary. It appears to be a separate New York-based company that acquired Rafaelian’s remaining share of the business and a portion of the first-lien debt as part of the restructuring support agreement. Under the plan, Bathing Club was set to control roughly 35 percent of the reorganized company, with Lion Capital holding the remaining 65 percent and the outside lender syndicate being bought out.
Practically speaking, Lion Capital exercises dominant control over Alex and Ani’s strategic direction. The firm appoints management, sets business priorities, and controls decisions about product lines, marketing, and distribution.
Where the Founder Stands
Carolyn Rafaelian no longer holds any ownership interest in the company she started. Her equity was wiped out through the bankruptcy process, which prioritized repaying creditors over preserving existing shareholder stakes. She has no seat on the board, no management authority, and no claim to the intellectual property or trademarks that define the brand. The court-approved reorganization plan transferred those assets to the new ownership group. Her net worth, once estimated by Forbes at around $1 billion, dropped to roughly $100 million by the time the process closed.
The Company Under Its New Owners
Alex and Ani today is a much smaller operation than it was at its peak. In mid-2023, the brand closed 20 retail locations, leaving just seven brick-and-mortar stores open, including outposts at Disney Springs in Florida and Plaza Las Américas in Puerto Rico. The business has shifted heavily toward e-commerce, with online sales through alexandani.com generating an estimated $20 million in 2025.
Scott Burger, who had chaired the board since 2020, replaced interim CEO Robert Trabucco in February 2022 and led the post-bankruptcy turnaround until January 2024. Whether Lion Capital intends to hold the brand long-term or position it for an eventual sale remains unclear. No public statements about an exit strategy or potential IPO have surfaced.