(NEXSTAR) — Claire’s, the mall-based accessories retailer that caters to tweens, has filed for Chapter 11 bankruptcy protection for the second time in less than a decade.
The Illinois-based company announced Wednesday that it was voluntarily beginning Chapter 11 proceedings in U.S. Bankruptcy Court for the District of Delaware “to maximize the value of its business.” Its Canadian branch is expected to do the same.
“This decision is difficult, but a necessary one,” Chris Cramer, CEO of Claire’s, said in a press release. “Increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire’s and its stakeholders. We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”
For now, Claire’s stores in North America are remaining open.
“I’d like to express my gratitude for our employees, who have continued to work diligently in a constantly evolving consumer landscape to deliver amazing products and experiences for our customers,” Cramer said. “We remain committed to serving our customers and partnering with our vendors and landlords in other regions during this time.”
Claire’s, well-known for its affordable jewelry and accessories, as well as its piercing service, previously filed for bankruptcy protection in 2018. According to CNBC, the retailer is facing a similar burden now, namely a steep debt load. Tariffs and increased competition are adding to the pressure now.
Currently, Claire’s has about $500 million in debt and between $1 billion and $10 billion in assets and liabilities. Citing court documents, CNBC reports Claire’s is exploring a sale of its assets.
Other retailers that have filed for bankruptcy this year include At Home and JOANN. Fellow mall-focused stores, like Torrid, have also been forced to close dozens of stores.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
