**Claire’s Files for Second Chapter 11 Bankruptcy Amid Debt and Retail Challenges**
Claire’s Holdings LLC, the parent company of fashion accessory retailers Claire’s and Icing, has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. The filing includes Claire’s U.S. operations as well as certain Gibraltar-based subsidiaries. Its Canadian affiliate is also planning to initiate similar proceedings in Canada.
“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 Claire’s CEO Chris Cramer. “We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”
According to reports, both the company’s assets and liabilities are valued between $1 billion and $10 billion, and Claire’s has been exploring a potential sale of its assets. This marks the second bankruptcy filing for the Hoffman Estates, IL-based retailer, which previously filed in 2018 due to a heavy debt burden and declining in-store sales due to the rise of online shopping.
Claire’s currently operates over 2,300 stores across 17 countries in North America and Europe, along with 9,000 concession kiosks in malls. However, Reuters has reported that the company may have to shutter all store locations if a sale cannot be finalized quickly. Since the bankruptcy announcement, 18 locations have already closed, according to published sources.
