Signet’s Strategic Outsourcing of Credit Portfolio


Simpson Thacher is representing Signet Jewelers Limited (“Signet”), the world’s largest retailer of diamond jewelry, in its announced strategic relationship with Alliance Data Systems Corporation (“Alliance Data”) through which Alliance Data will acquire $1 billion of Signet’s prime-only credit quality accounts receivable and will become the primary provider of credit funding, servicing and associated program functions to Signet’s Kay, Jared and Regional brands’ customers.

Simpson Thacher is also representing Signet in its preliminary agreement with Genesis Financial Solutions, Inc. (“Genesis”) through which Genesis will service Signet’s non-prime accounts receivable, including operational interface and customer servicing. The Alliance Data transaction is expected to close in October 2017, subject to regulatory approval and customary closing conditions, and the servicing agreement with Genesis is expected to commence at the same time.

Signet operates approximately 3,600 stores primarily under the name brands of Kay Jewelers, Zales, Jared The Galleria Of Jewelry, H.Samuel, Ernest Jones, Peoples and Piercing Pagoda.

The Simpson Thacher team includes Maripat Alpuche (Picture), Ben Schaye, Sara Campbell, Michael Ting, Todd Noelle and David Whelan (M&A); Larry Moss, Eric Wolf and Alisa Tschorke (ECEB); Jonathan Goldstein and George Davis (Tax); and Lori Lesser and Linda Nyberg (IP).

Involved fees earner: Maripat Alpuche – Simpson Thacher & Bartlett; Ben Schaye – Simpson Thacher & Bartlett; Sara Campbell – Simpson Thacher & Bartlett; Todd Noelle – Simpson Thacher & Bartlett; David Whelan – Simpson Thacher & Bartlett; Laurence Moss – Simpson Thacher & Bartlett; Eric Wolf – Simpson Thacher & Bartlett; Alisa Tschorke – Simpson Thacher & Bartlett; Jonathan Goldstein – Simpson Thacher & Bartlett; George Davis – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Signet Jewelers Limited;

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Author: Ambrogio Visconti