Claire's, a retailer specializing in teen accessories and ear piercing, filed for Chapter 11 bankruptcy protection, marking its second such filing since 2018 due to accrued debt and a trend towards online shopping. The company announced its U.S. and Gibraltar subsidiaries would continue operations while seeking strategic alternatives. Claire's operates over 2,750 stores across North America and Europe and has assets and liabilities between $1 billion and $10 billion. Factors like increased competition and tariffs have compounded its financial struggles.
"This decision is difficult, but a necessary one," Chris Cramer, CEO of Claire's, said in a press release issued Wednesday. "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."
Claire's Holdings LLC and certain of its U.S. and Gibraltar-based subsidiaries - collectively Claire's U.S., the operator of Claire's and Icing stores across the United States, made the filing in the U.S. Bankruptcy Court in Delaware on Wednesday.
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