Latest news with #ChrisCramer
IOL News
17 hours ago
- Business
- IOL News
Iconic teen retailer Claire's files for bankruptcy again
Claire's retail stores have filed for bankrupcy for a second time as they struggle to compete with online retailers such as SHEIN and Temu. Claire's, the iconic teen and tween jewellery and accessories retailer, has filed for bankruptcy in the United States for the second time in seven years Known for its vibrant accessories and ear-piercing services, the chain, familiar to many South Africans through its Clicks partnerships and outlets in malls from Mall of Africa to Canal Walk, now faces an uncertain future. In Delaware court filings, Claire's outlined plans to close roughly 700 stores across North America, including those under its Icing brand, while seeking a buyer for around 800 remaining outlets. Upon announcing the filing, Claire's CEO Chris Cramer described the choice as 'difficult, but necessary, citing increased competition, shifting consumer habits, debt obligations, macro-economic headwinds and continued trend away from brick-and-mortar retail stores.
USA Today
a day ago
- Business
- USA Today
Claire's could close over 1,100 locations if a buyer isn't found soon: court records
Mall jewelry chain Claire's, which filed for bankruptcy for the second time on Aug. 6, has also identified over 1,100 stores that could close soon, according to court records, and is looking for a buyer for about 800 remaining locations. The Illinois-based company, which has 1,326 stores across the U.S., has faced financial challenges due to the rise of fast-fashion brands like Shein and Temu, high rent costs, and new tariffs from supplier nations, including China, based on documents filed with the U.S. bankruptcy court in Delaware. In court filings obtained by USA TODAY, the company identified 18 Claire's and Icing stores in the U.S. that will close by Sept. 7 at the latest. Additionally, the company will have to shut down all of its locations if it cannot complete a sale quickly. Here is what you need to know. Thousands of stores on the chopping block In court filings, Claire's CEO, Chris Cramer, disclosed that the company has recently solicited bids for its business and has received multiple letters of intent to purchase its assets. Claire's would 'stop the liquidation sales in the event of an actionable going-concern transaction and will continue to make every effort to effectuate such a transaction," added Cramer. A list of stores obtained by USA TODAY shows 1,119 stores that could be closed. The list of stores can be searched below. Court documents reveal list of Claire's closures As part of the ongoing bankruptcy process, 18 Claire's-owned stores are set to close no later than Sept. 7 across the country, with additional stores potentially added to the list, the company said in court records. A map of closing stores can be found here. Find your local store by searching by city or state: Founded in 1961 in Chicago, Claire's specializes in selling necklaces, bracelets, and various accessories including headphones and soft toys. For many American girls, getting their first ear piercing at Claire's has become a "rite of passage" that has continued for decades. The company claims to have pierced over 100 million ears since 1978. USA TODAY's Mike Snider and Reuters contributed to this report. Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at and follow him on X @fern_cerv_.
The Hill
a day ago
- Business
- The Hill
Some Claire's, Icing stores set to close after bankruptcy filing: court docs
(NEXSTAR) — More than a dozen Claire's stores, as well as a few Icing locations, are set to close in the coming weeks after the former filed for bankruptcy. Illinois-based Claire's, which also operates Icing, announced Wednesday that it was voluntarily beginning Chapter 11 bankruptcy proceedings 'to maximize the value of its business.' 'This decision is difficult, but a necessary one,' Chris Cramer, CEO of Claire's, said in a press release, citing pressure from 'increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail,' as well as debt obligations and 'macroeconomic factors.' 'We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives,' he added. Trump promised lower grocery prices 'on Day One.' Here's what happened In the same press release, the company said Claire's stores 'will remain open.' Court documents filed the same day, however, identified 18 stores — five Icing stores and 13 Claire's locations — across 13 states for potential closure. These stores were previously identified as locations that 'should be exited,' court documents explain. Alabama 3518 Eastdale Mall, Montgomery California 8042 Galleria at Tyler, Riverside (Icing) 5586 Newpark Mall, Newark Illinois 5307 Ford City Mall, Chicago Massachusetts 3358 Market Street at Lynnfield, Lynnfield Michigan 5896 Bay City Town Center, Bay City 3422 Woodland Mall, Grand Rapids (Icing) Minnesota 6684 Northtown Mall, Blaine New Jersey 6373 Livingston Mall, Livingston New York 8456 Greece Ridge, Rochester (Icing) Pennsylvania 5406 Union Town Mall, Union Town Tennessee 5368 Pinnacle at Turkey Creek, Knoxville Texas 6252 Shops at Highland Village, Highland Village 8615 Mall of Abilene, Abilene (Icing) Utah 6705 Provo Town Center, Provo 6233 Junction Commons, Park City 8668 University Orem, Orem (Icing) Washington 722 Woodinville Plaza, Woodinville Store closing sales are expected to end no later than September 7, should the filing receive approval. Claire's, well-known for its affordable jewelry and accessories, as well as its piercing service, previously filed for bankruptcy protection in 2018. According to CNBC, the retailer is facing a similar burden now, namely a steep debt load. Tariffs and increased competition are adding to the pressure now. Currently, Claire's has about $500 million in debt and between $1 billion and $10 billion in assets and liabilities. Citing court documents, CNBC reports Claire's is exploring a sale of its assets. Other retailers that have filed for bankruptcy this year include At Home and JOANN. Fellow mall-focused stores, like Torrid, have also been forced to close dozens of stores.
Yahoo
3 days ago
- Business
- Yahoo
Claire's initiates bankruptcy proceedings in US and Canada
Accessories retailer Claire's US has initiated voluntary Chapter 11 bankruptcy proceedings in the US Bankruptcy Court for the District of Delaware to maximise the value of its business. The proceedings are intended to facilitate an immediate monetisation process for its assets while the company continues to assess strategic alternatives. Claire's retail stores in North America will continue to operate and serve customers in-store and online during this period. The company intends to maintain its commitments to customers, employees and partners, which includes the continued payment of employee wages and benefits. This will be achieved through the filing of customary "first day" motions with the US and Canadian courts. The company's Canadian affiliate operating stores across Canada also intend to initiate a proceeding in the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act (CCAA). The company stated: 'Claire's and ICING [a brand targeted towards young women, while Claire's focuses on younger girls and teenagers] locations outside of North America are not included in the Chapter 11 or CCAA proceedings." Claire's US is also seeking approval from the court for the consensual use of cash collateral to ensure sufficient liquidity to support ongoing operations. This step is crucial for the company to continue functioning without significant disruption. Claire's CEO Chris Cramer stated: "This decision is difficult, but a necessary one. 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. "We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives." Legal counsel for Claire's is provided by Kirkland & Ellis, with Houlihan Lokey serving as the investment banker. Alvarez & Marsal has been appointed as the restructuring advisor. For its proceedings in Canada, Claire's has engaged Osler, Hoskin & Harcourt as its legal counsel. "Claire's initiates bankruptcy proceedings in US and Canada" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
3 days ago
- Business
- Forbes
Bankrupt Claire's Is Headed Toward Liquidation If No Buyer Found
Teen and tween retailer known for its ear-piercing services and affordable, trend-forward jewelry and accessories has filed its First Day Pleadings with the Delaware Federal Bankruptcy Court in support of its Chapter 11 bankruptcy petition. It outlines two paths forward for the troubled mall-based retailer. Under its go-forward plan, it must find a buyer for its remaining 800 North American stores after closing 700 stores, including all 120 Icing stores, its older sister brand, and 210 Walmart store-in-store locations. Sarah Foss, Debtwire's global head of bankruptcy, doesn't have much hope it will follow this route. 'It is unlikely that such a bidder will emerge,' she told Retail Wire. In early June, the company reached out to 150 potential strategic and financial buyers and executed 60 confidentiality agreements. The company said it received multiple letters of intent and some negotiations are ongoing. If no buyer is found, it will begin liquidation. Hilco Merchant Resources has already been signed to handle liquidation in the U.S. This is the most likely scenario since Claire's joined the infamous 'zombie' retailers club after filing multiple bankruptcies – Claire's filed first in 2018. Once a retailer reaches walking-dead status, it doesn't turn out well, just ask Forever 21, Rue21, Joann Fabrics, Party City and Rite Aid. CEO Chris Cramer blamed the company's failure on three factors: a shift away from brick-and-mortar retail, a heavy debt load and 'macroeconomic factors,' i.e. tariffs – 70% of its products are imported, including 56% from China. Yet, Cramer also serves as Claire's COO and CFO, which would test the limits of even the most talented executive overseeing an international retailer with 2,300 stores, including 1,350 in the U.S. and 13,000 employees, of which 7,000 are considered essential for the go-forward plan. Troubled Past Since its first bankruptcy filing, Claire's was able to bounce back, after it unloaded $1.9 billion in debt and secured $575 million in new capital under Elliott Management Corporation and Monarch Alternative Capital. It also navigated the pandemic store closures and enjoyed a post-pandemic bounce in 2021, so much so that it filed for an IPO at the end of September 2021. But it got out over its skis in its ambitious plans and eventually withdrew the IPO in July 2023. Effectively, the company has been in a downward spiral ever since, and even with the change of leadership in June 2024 when Cramer stepped in and then-CEO Ryan Vero stepped down, the damage was done. Excessive Growth Without Necessary Infrastructure The Claire's banner alone operates nearly 2,000 retail stores, including 1,500 in North American and 825 internationally. It also supports some 200 international stores under a franchise model. That store footprint puts it in league with retailers such as Target, Home Depot, Tractor Supply, Ulta, Gap Inc. across Gap, Banana Republic and Athleta, and Signet Jewelers, including Kay's, Zales and Banter by Piercing Pagoda, which goes head-to-head with Claire's in its mall base though it is more upscale. It also expanded through a concession model. It partnered with retailers, including Kohls, CVS, and Walmart, to carry Claire's products from which it derived a sales commission. Concessions grew to over 20,000 locations through 2023. However, it didn't have the inventory management systems to support the concession business, let alone its core retail operations, and confronted serious inventory shrinkage issues in those locations. After being unable to turn a profit in the concessions business, it scaled back concessions to 9,000 locations over the last two years. Through the bankruptcy proceedings, all North American concessions will be shuttered. Note: Walmart was both a concession partner and host for Claire's operated store-in-stores. Claire's e-commerce storefront has been a big loser, proving 'not conducive for the long-run,' the company stated, especially since its core ear-piercing services can only be provided in-store. Plus the company failed to bring its e-commerce shopping experience up to current industry standards. As the company tried to scale, it didn't have the necessary infrastructure to sustain that growth. Each store location carries some 7,500 individual SKUs, yet the existing supply chain system couldn't absorb the load nor could it effectively forecast demand. To fix that problem, the company brought in Blue Yonder's end-to-end supply chain management system which went operational just before the 2023 holiday season, but by then it was too late. Failure To Adapt To Changing Tastes In retrospect, Claire's rested upon its laurels and thought the past could carry it forward, as it stated: 'Claire's is a global brand powerhouse for self-expression, creating exclusive, curated and fun fashionable jewelry and accessories. Claire's is also a go-to establishment for ear piercing, having pierced over 100 million ears since 1978. Indeed, Claire's ear-piercing services are a renowned 'rite of passage' for millions of girls across the world who trust Claire's with their first ear-piercing experience.' It didn't effectively adapt as disrupters swooped in with more trend-forward products and more modern ways to shop. 'Lovisa offers younger shoppers a more sophisticated assortment at value prices,' noted GlobalData's Neil Saunders. And Rowan has moved into the more premium space, offering all hypoallergenic jewelry and piercings performed only by licensed nurses. Ulta and Five Below have also entered the piercing space. And while the company cited a decline in mall shopping and a shift toward e-commerce as a major factor in its decline, it also observed: 'The majority of the Company's customers are young individuals who do not themselves have access to funds, credit cards, or the ability to shop online. These customers rely on their parents or caretakers to bring them to the Company's stores so that they can see and touch the Company's products.' So which is it? Claire's describes its core customers as 'Gen Zalpha,' a combination of Generation Z, ages 13 to 28 years, and pre-teen Generation Alpha. A report by ICSC disputes the assertion that the younger generation is avoiding malls and other in-person retail experiences, based upon a survey of 1,000 GenZ consumers. 'Our research on Gen Z shows that malls are evolving into social hubs for this critical demographic.,' shared Stephanie Cegielski, ICSC's vice president of research. 'Three in five Gen Zers visit malls just to socialize or meet friends, even if they don't have a specific purchase in mind.' The company's claim that young people aren't shopping at malls is a red herring. It didn't change with the times. The brand has been operating in essentially the same format with ear piercings and accessories since 1978. The core Claire's customer back in the day is the grandmother of its core customer today. Meanwhile, emerging competitors, like Lovisa, Rowan and Studs have a youthful, modern vibe that Claire's can't match. Claire's Time Has Passed 'The chain has been swamped by a cocktail of problems, both internal and external, that made it impossible to stay afloat,' GlobalData's managing director Saunders observed. 'Most recently, tariffs have pushed costs higher, and Claire's is not in a position to manage this effectively.' He sees little way forward for the company. 'Reinventing will be a tall order in the present environment.' Debtwire's Foss agrees and suggests that Claire's is too far gone to recover. 'Bankruptcy can be a good option for a struggling retail chain, allowing it to refocus, trim its debt and slim down its retail footprint,' she said. 'However, retailers that have emerged from Chapter 11 only to file again a few years later often find themselves liquidating and shutting their doors entirely.'
