Latest news with #ClairesHoldings
Yahoo
3 days ago
- Business
- Yahoo
An iconic mall chain store just filed for bankruptcy
Here's what the move means for your shopping future. Maybe you spent your teen years getting your ears pierced at Claire's or browsing butterfly clips and mood rings with friends at the mall. Or, if you're like me, maybe you took your 11-year-old daughter to get her ears pierced there just last month. Whatever your personal history with Claires, you might want to brace for some sentimental heartbreak. On August 6, Claire's Holdings LLC announced it has filed for Chapter 11 bankruptcy in the U.S., with plans to pursue similar proceedings in Canada under the CCAA. The company, which operates the beloved Claire's and Icing retail chains across North America, said it's initiating the process to "maximize the value of its business" amid growing economic pressures, according to a press release. CEO Chris Cramer cited in the release 'increased competition, consumer spending trends, and the ongoing shift away from brick-and-mortar retail' — along with the company's existing debt — as reasons for the decision. 'This decision is difficult, but a necessary one,' he said. Still, Claire's emphasized that all retail stores and its website will remain open throughout the restructuring. The company will continue to pay employees and work with vendors and landlords as it navigates this next phase, including ongoing conversations with potential strategic and financial partners. This is the second time Claire's has filed for bankruptcy; the first was in 2018. While Claire's hasn't announced store closures yet, the move signals a larger trend affecting legacy mall brands — and leaves loyal fans wondering what the future of this iconic retailer will look like. Solve the daily Crossword
Washington Post
06-08-2025
- Business
- Washington Post
Claire's, known for piercing millions of teens' ears, files for Chapter 11, 2nd time since 2018
NEW YORK — Mall-based teen accessories retailer Claire's, known for helping to usher in millions of teens into an important rite of passage — ear piercing — but now struggling with a big debt load and changing consumer tastes, has filed for Chapter 11 bankruptcy protection. 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. That marked the second time since 2018 and for a similar reason: high debt load and the shift among teens heading online away from physical stores.
Yahoo
06-08-2025
- Business
- Yahoo
Claire's Files For Bankruptcy in US and Canada as Debt and Increased Competition Weighs on Accessories Firm
Claire's is headed back to bankruptcy court. On Wednesday, 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, announced that it has commenced voluntary Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware. More from WWD Mecca Unveils the World's Biggest Freestanding Beauty Store All the Beauty Retail Expansions of 2025 EXCLUSIVE: Caleres Elevates Brian Costello To Lead Famous Footwear The accessories firm — which sells an assortment of jewelry, socks, slippers, beauty, hair accessories and home — said the move is to 'to maximize the value of its business.' What's more, the company's Canadian affiliate operating stores across Canada (Claire's Canada, and together with Claire's U.S.) also intends to commence proceedings in Canada under the Companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice. The company said that these proceedings will 'enable Claire's to immediately commence the monetization process for its assets to maximize value for the business, while continuing an active and comprehensive review of strategic alternatives, including discussions with potential strategic partners that began prior to the filings.' Chris Cramer, chief executive officer of Claire's, said in a statement that this decision was '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,' Cramer said. 'We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.' Claire's noted that its retail stores in North America will remain open and continue to serve customers while the company 'continues to explore all strategic alternatives.' Through the filing of customary 'first day' motions with the U.S. Court and the Canadian Court, Claire's added that it 'intends to uphold its commitments to customers, employees, and partners, including continued payment of employee wages and benefits,' the company said. 'I'd like to express my gratitude for our employees, who have continued to work diligently in a constantly evolving consumer landscape to deliver amazing products and experiences for our customers,' Cramer added. 'We remain committed to serving our customers and partnering with our vendors and landlords in other regions during this time.' This isn't Claire's first time filing for bankruptcy. The company is owned by Elliott Management Corp. and Monarch Alternative Capital, who were part of the creditor group that took control of the retailer after it filed for Chapter 11 bankruptcy court protection in March 2018. The bankruptcy helped Claire's eliminate $1.9 billion of debt. The retailer exited bankruptcy proceedings seven months later. The tween retailer said in October 2018 that it gained $575 million in new capital in its reorganization. The retailer was once owned by the Schaefer family. It became a publicly-traded firm in 2005 and was taken private in a $3.1 billion leveraged buyout by Apollo Global Management in 2007. In 2021 Claire's said it was planning an initial public offering again, but that plan was abandoned in 2023. In recent years, the girls' accessories chain has expanded its consumer reach through concessions, or shop-in-shops, in retailers that include Walmart and Macy's. But Claire's has been struggling for years. It faces challenges from other retailers that also cater to its customer base. Those include e-tailers such as Shein and Temu, who both offer a wider range of better quality merchandise at the same low price points. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] 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
Fast Company
06-08-2025
- Business
- Fast Company
Claire's stores closing: See the list of doomed locations as tween retailer files for second bankruptcy
Claire's, the fashion and accessories retailer that has been a staple of American malls for decades, has filed for Chapter 11 bankruptcy protection for a second time. The retail chain, aimed at the teen and tween market, has been struggling with the same headwinds faced by many brick-and-mortar businesses, including the broader shift to online shopping, increased competition, rising prices, and an unsustainable debt load. In a press release on Wednesday, parent company Claire's Holdings LLC said it will use the Chapter 11 process to 'maximize the value' of its business. That includes exploring a potential sale. 'We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives,' Claire's CEO Chris Cramer said in a statement. Which Claire's stores are closing? While Claire's said its North American stores will remain open as part of the Chapter 11 process, it's likely that many will not survive as the company reviews its physical footprint and assesses which locations may be underperforming. In fact, in a bankruptcy court filing, Claire's says it has already reviewed its lease portfolio and decided that some stores 'should be exited.' The filing identifies 18 locations across numerous states that will immediately begin store closing sales: Market Street at Lynnfield Claire's Lynnfield Massachusetts Woodinville Plaza Claire's Woodinville Washington Galleria at Tyler-ICG Icing Riverside California Provo Town Center Claire's Provo Utah Newpark Mall Claire's Newark California Shops at Highland Village Claire's Highland Village Texas Mall of Abilene (ICG) Icing Abilene Texas 8456 Greece Ridge (ICG) Icing Rochester New York Pinnacle at Turkey Creek Claire's Knoxville Tennessee Union Town Mall Claire's UnionTown Pennsylvania Ford City Mall Claire's Chicago Illinois Northtown Mall Claire's Blaine Minnesota Bay City Town Center Claire's Bay City Michigan Eastdale Mall Claire's Montgomery Alabama Junction Commons Claire's Park City Utah University Orem (ICG) Icing Orem Utah Woodland Mall (ICG) Icing Grand Rapids Michigan Livingston Mall Claire's Livingston New Jersey Closing sales were expected to begin as early as July 25 and conclude no later than September 7. The filing also lists additional stores that are expected to be added to the closing list as part of Claire's agreement with a liquidation firm. The list includes 1,326 locations that could be closed by October 31. Reached for comment, a spokesperson for Claire's referred Fast Company to Wednesday's press release but did not comment on a more specific timeline for the store closures or whether additional stores will be added to the list.
CBC
06-08-2025
- Business
- CBC
Accessory retailer Claire's to seek creditor protection in Canada but stores will stay open
Claire's Holdings LLC says it has filed for bankruptcy protection in the U.S. and will soon follow suit in Canada. The accessories and cosmetics retailer says it will make a filing with the Ontario Superior Court under the Companies' Creditors Arrangement Act. Claire's stores in North America will remain open as it embarks on the process, which it says will help monetize its assets and allow it to explore strategic alternatives for the business. Claire's CEO Chris Cramer positioned the decision to file for creditor protection as difficult but necessary. He says the company made the move because of increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail.
