Published: Tue, March 20, 2018
Finance | By Jaime Brady

Claire's files for bankruptcy: Mall jewelry chain aims to restructure

Claire's files for bankruptcy: Mall jewelry chain aims to restructure

Claire's is the latest in a string of recent USA retail bankruptcies including children's clothing chain Gymboree, athletic gear seller the Sports Authority and toy seller Toys "R" Us.

The Claire's company announced Monday that it plans to keep stores open while it restructures its debt, however just as Toys R Us, the initial Chapter 11 filing could turn into something more serious as time goes on.

In a Chapter 11 bankruptcy filing on Monday, Claire's said it will reduce its debt by $1.9 billion.

The organization has stores in around 99% of USA malls, according to a court filing.

The company comprises 7,500 stores, concession locations, and franchise stores under the Claire's and Icing brands. For more information on Claire's locations, click the "Store locator" link on this page.

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Toys 'R Us said last week it was liquidating all its United States stores.

Claire's is another casualty of a string of private value buyouts orchestrated by outside investors who stacked up on obligation about 10 years prior, saddling retailers with burdensome payments.

Another retail giant, Best Buy announced it would close 250 of its USA stores selling cell phones. The company says it pierced 3.5 million ears in the US past year.

Claire's said it is "confident" it will emerge from bankruptcy protection in September, and it believes it can compete with the shift to online shopping, arguing that its "iconic ear piercing services are unmatched and cannot be replicated online". "Unlike other retailers that have come before it, Claire's has commenced its restructuring process from a position of unique operational strength". Recent closures in Northwest Indiana or the south suburbs have included Sears, Kmart, Best Buy, MC Sports, Gander Mountain, Sports Authority and many others.

And the firm said that mall traffic declined 8 percent in the previous year.

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