Claire's, teen jewelry chain, files for bankruptcy a 2nd time

Boston Globe

4 hours ago

Claire's, which is based in Hoffman Estates, Illinois, operates more than 2,750 stories in 17 countries across North America and Europe, according to its website. It also owns Icing, a women's jewelry brand that operates 190 locations.
The company had estimated liabilities of $1 billion to $10 billion, according to the court filing. The company said it had 25,000 to 50,000 creditors.
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The company began as a chain of wig stores in 1961 before combining with a small chain called Claire's Boutiques. It operated as Claire's Accessories until the late 1990s, and established itself over the years as the mall spot for American teenagers and preteens to shop and pierce their ears.
But the company has faced financial volatility in recent years.
It first filed for bankruptcy protection in 2018 in the hopes of shedding nearly $2 billion in debt, saying it would close underperforming stores across the country. Its creditors, Elliot Management Corp. and Monarch Alternative Capital, took control of the company.
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By 2022, the company's fortunes were looking brighter. It teamed up with retailers such as Walmart to offer its products in aisles there and said that it had recorded a surge of more than 50% in global sales in 2021 compared with 2020. Claire's stoked public excitement in late 2021 with a planned initial public offering that it said could raise up to $100 million.
In June 2023, the jewelry retailer said it would not proceed with the IPO.
Steep tariffs imposed by President Donald Trump on US trading partners have also raised pressure on retailers who rely on suppliers in countries like China. Claire's is also due to repay a loan of nearly $500 million in December next year, according to Bloomberg.
In its statement Wednesday, Claire's said that it would seek approval for 'a consensual use of cash collateral' to ensure it had the funds to continue operating.
Other retailers once considered mainstays in shopping centers have also struggled. Forever 21's operator in the United States filed for a second bankruptcy of its own in March, saying that it had been undercut by competition with non-US retailers such as Temu and Shein because of an exemption on duties for low-cost goods. Trump, however, has since ordered an end to the exemption.
Claire's
Dana Gerber of the Globe staff contributed to this report.
This article originally appeared in
.