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Fashion Retailer Claire’s Files for Second Chapter 11 Bankruptcy
Claire’s Holdings LLC and certain of its U.S. and Gibraltar-based subsidiaries, the operator of Claire’s and Icing stores across the U.S., said Wednesday it had commenced voluntary Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware. Its Canadian affiliate operating stores across Canada also intends to commence proceedings in that country.
“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,” said Chris Cramer, CEO of Claire’s. “We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”
CNBC reported that Claire’s said assets and liabilities are both between $1 billion and $10 billion and it has explored a sale of its assets. The Hoffman Estates, IL-based fashion jewelry retailer previously filed for bankruptcy in 2018 for a similar reason: a steep debt load it was unable to maintain as sales declined and shopping moved online, reported CNBC.
The retailer operates more than 2,300 retail locations across 17 countries in North America and Europe. It also operates 9,000 concessions kiosks within malls. Citing court documents, Reuters said the chain may have to close all of its locations if it cannot get a sale completed quickly. In the wake of the bankruptcy filing, it has shuttered 18 locations, according to published reports.
- ◦Sale/Acquisition
- ◦Financing
