Latest news with #Icing
Yahoo
3 days ago
- Business
- Yahoo
Claire's files for bankruptcy again; 1,300 stores at risk
Teenage dreams and mall nostalgia are under threat once more. Claire's—the glitter-soaked haven for ear piercings, statement scrunchies, and sparkly everything—has landed back in bankruptcy court. More than 1,300 stores and thousands of jobs hang in the balance, raising the question: how did a teen fashion favorite end up in trouble for the second time in seven years? Claire's second bankruptcy filing puts stores nationwide in jeopardy For now, most locations of Claire's and its sister brand Icing will remain open, with only 18 stores scheduled to shut their doors by early September, according to the company's voluntary August 6 filing in the U.S. Bankruptcy Court for the District of Delaware. Still, the threat of wider cutbacks looms. Claire's has asked the court for approval to potentially shutter about 1,100 standalone stores, along with 207 locations inside Walmart, later this year. If approved, those sites would host clearance events from August 8 through October 31—unless their landlords object after receiving notice. Which Claire's stores are closing first? The first wave of closures is already underway. According to the bankruptcy filing, the 18 locations set to close soon include 13 Claire's stores and 5 Icing shops. The full list is below. Claire's stores scheduled to close: Uniontown Mall — Uniontown, Pennsylvania Ford City Mall — Chicago, Illinois Bay City Town Center — Bay City, Michigan Pinnacle at Turkey Creek — Knoxville, Tennessee Market Street — Lynnfield, Massachusetts Woodinville Plaza — Woodinville, Washington Provo Town Center — Provo, Utah NewPark Mall — Newark, California Shops at Highland Village — Highland Village, Texas Northtown Mall — Blaine, Minnesota Eastdale Mall — Montgomery, Alabama Junction Commons — Park City, Utah Livingston Mall — Livingston, New Jersey Icing stores scheduled to close: Woodland Mall — Grand Rapids, Michigan Galleria at Tyler — Riverside, California Mall of Abilene — Abilene, Texas The Mall at Greece Ridge — Rochester, New York University Place — Orem, Utah How Claire's landed in bankruptcy court twice in seven years Claire's first bankruptcy came in March 2018, when the retailer filed for Chapter 11 protection under the weight of more than $1.9 billion in debt from a 2007 leveraged buyout by Apollo Global Management. Declining mall traffic and growing competition from fast-fashion retailers and online sellers had eroded sales, while steep interest payments drained resources. The restructuring allowed Claire's to close underperforming stores, cut roughly $1.9 billion in debt, and secure $575 million in new capital. By October 2018, the company had emerged from bankruptcy under new ownership—primarily its lenders—with a leaner balance sheet and a renewed focus on growth through mall stores and retail concessions. In contrast, the 2025 bankruptcy reflects a deeper operational crisis. Although its debt load—about $500 million—is far smaller than in 2018, new pressures have mounted. Rising tariffs have increased import costs, consumer buying habits have shifted further toward online competitors, and mall culture has continued to wane. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership In a press release from parent company Claire's Holdings LLC and Claire's U.S., Claire's CEO Chris Cramer attributed the company's second bankruptcy filing to factors including increased competition, a shift away from 'brick-and-mortar retail' and the company's debt. 'We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives,' Cramer said in the release. This time, Claire's is preparing for mass closures and faces the possibility of liquidating large portions of its business if buyers do not emerge. While the 2018 filing was largely a financial restructuring with a clear path to recovery, the 2025 case signals a more severe contraction and an uncertain future for the brand. Source: The Columbus Dispatch Read the original article on GEEKSPIN. Affiliate links on GEEKSPIN may earn us and our partners a commission. 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
Fashion United
3 days ago
- Business
- Fashion United
Claire's files for bankruptcy in the US and several other countries
Fashion jewellery group Claire's placed its US operations and several of its subsidiaries operating stores as part of the Claire's and Icing brands under Chapter 11 bankruptcy protection on July 28, 2025. In a statement, Claire's said that bankruptcy proceedings would also be initiated in Canada. The company did not provide a specific timeline. Claire's noted that stores will remain open and employees will continue to be paid. Claire's' French subsidiary was placed in receivership in July, the lawyer representing the staff told AFP. The decision to file for bankruptcy in the US "is difficult but necessary", said Chris Cramer, CEO of Claire's since June 2024, in a statement. "Increased competition, consumer spending trends and the continued shift away from high street retail, coupled with our current debt obligations and macroeconomic factors, necessitate this measure," Cramer continued. "We continue to hold active discussions with potential strategic and financial partners." He also mentioned the management's determination to complete a "review of strategic alternatives". For Neil Saunders, director at GlobalData, this bankruptcy "is not really a surprise. The chain is overwhelmed by a cocktail of problems, both internal and external, that make its profitability impossible." Saunders believes that "Reinventing itself will be difficult in the current environment." The new US tariffs appear to be the final straw, which "Claire's is unable to manage effectively". He also mentioned competition from new players targeting its traditionally young clientele, such as Lovisa, and online retail with Amazon leading the way. This is the second time Claire's has filed for Chapter 11 bankruptcy protection. In 2018, it used this process to reduce a colossal debt of 2.1 billion dollars. Founded in 1961, Claire's was acquired in 2007 by the investment firm Apollo Global Management. Approximately 3,000 shops According to documents filed on Wednesday with a Delaware bankruptcy court, the investment firm Elliott Management is now its largest shareholder with a cumulative stake of at least 39.61 percent. In these documents, Claire's specifies that it employs approximately 7,000 people in the US, including approximately 2,000 full-time employees, and has a network of 1,350 shops. Its debt is between one and ten billion dollars, with over 600 million due in 2026. According to Claire's website, the group operates a total of more than 2,750 stores under its name in seventeen countries across North America and Europe, as well as 190 Icing stores in North America. It also has more than 300 franchised stores in the Middle East and South Africa and sells its products in thousands of concessions worldwide. The latest results available on its website relate to the 2021 fiscal year. This was preliminary, unaudited data: the group forecast net sales of 1.39 billion dollars and comparable operating income between 273 and 277 million dollars. When contacted by AFP for more recent data, the group was unable to provide any at this stage. In France, the Paris Commercial Court opened receivership proceedings on July 24, with a six-month observation period, according to the lawyer interviewed by AFP a few days later. At the end of this observation period, the court will decide whether a continuation plan is possible, with a potential buyer, or whether liquidation, meaning the cessation of activity, should be pronounced. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
NBC News
4 days ago
- Business
- NBC News
Claire's, known for piercing millions of teens' ears, files for Chapter 11, 2nd time since 2018
NEW YORK (AP) — 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. Claire's Chapter 11 filing follows the bankruptcies of other teen retailers including Forever 21, which filed in March for bankruptcy protection for a second time and eventually closed down its U.S. business as traffic in U.S. shopping malls fades and competition from online retailers like Amazon, Temu and Shein intensifies. Claire's, based in Hoffman Estates, Illinois and founded in 1974, said that its stores in North America will remain open and will continue to serve customers, while it explores all strategic alternatives. Claire's operates more than 2,750 Claire's stores in 17 countries throughout North America and Europe and 190 Icing stores in North America. In a court filing, Claire's said its assets and liabilities range between $1 billion and $10 billion. '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.' Like many retailers, Claire's was also struggling with higher costs tied to President Donald Trump's tariff plans, analysts said. Cramer said that the company remains in 'active discussions' with potential strategic and financial partners. He noted that the company remains committed to serving its customers and partnering with its suppliers and landlords in other regions. Claire's also intends to continue paying employees' wages and benefits, and it will seek approval to use cash collateral to support its operations. Neil Saunders, managing director of GlobalData, a research firm, noted in a note published Wednesday Claire's bankruptcy filing comes as 'no real surprise.' 'The chain has been swamped by a cocktail of problems, both internal and external, that made it impossible to stay afloat,' he wrote. Saunders noted that internally, Claire's struggled with high debt levels that made its operations unstable and said the cash crunch left it with little choice but to reorganize through bankruptcy. He also noted that tariffs have pushed costs higher, and he believed that Claire's is not in a position to manage this latest challenge effectively. Competition has also become sharper and more intense over recent years, with retailers like jewelry chain Lovisa offering younger shoppers a more sophisticated assortment at low prices. He also cited the growing competition with online players like Amazon. 'Reinventing will be a tall order in the present environment,' he added.
Boston Globe
4 days ago
- Business
- Boston Globe
Claire's, teen jewelry chain, files for bankruptcy a 2nd time
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. Advertisement 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. Advertisement 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 .
Los Angeles Times
4 days ago
- Business
- Los Angeles Times
Teen destination Claire's files for second bankruptcy in 7 years
Claire's, the shopping mall chain that sells flashy accessories to teens and tweens, filed for Chapter 11 bankruptcy protection on Wednesday amid shrinking margins and pressure from online competitors. It's the second bankruptcy filing in seven years for the chain, which was once the go-to destination for ear piercing and cheap jewelry. The Hoffman Estates, Ill.-based company has 15 locations in the Los Angeles area and more than 100 in California. In a news release Wednesday, the company said its retail locations in North America will remain open during the bankruptcy process. The company operates 2,750 stores in 17 countries as well as 190 locations in North America under its Icing label, according to its website. 'This decision is difficult, but a necessary one,' Claire's Chief Executive Chris Cramer said in a statement. '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,' he said. The company will continue to explore strategic alternatives and is in discussions with potential financial partners, the release said. The bankruptcy filing comes three months after the company deferred interest payments due late next year on a $480-million loan. Claire's estimated the total value of both its assets and liabilities to be between $1 billion and $10 billion. When the private company first filed for bankruptcy protection in 2018, it offloaded $1.9 billion in debt and emerged with $575 million in new capital. The company's decline aligns with the decreasing popularity of malls in recent years. Claire's storefronts used to be a staple in shopping malls across the country, where teen girls could shop for colorful items such as hair clips, headbands and handbags. The stores were also a major destination for ear piercing services. 'Claire's is synonymous with the shopping mall,' said Dominick Miserandino, chief executive of Retail Tech Media Nexus. 'For the newer online generation, malls aren't on their radar in the same way.' Other mall-based chains, including Los Angeles-based Forever 21 and Foot Locker, filed for bankruptcy protection earlier this year. The crafts and fabric retailer Joann shut down its operations in February, and popular department store Macy's is in the process of closing 150 underperforming locations. Claire's has been squeezed by competition from low-cost online retailers such as Shein and Temu, and has attempted to keep up with major retailers such as Amazon by expanding beyond malls through a partnership with Walmart. Today's young shoppers do a lot of browsing online and look to social media influencers for the latest trends, rather than brick-and-mortar shops, experts said. 'The competition Claire's is seeing, mostly online, is better able to keep up with generation Alpha,' said Ray Wimer, a professor of retail practice at Syracuse University. Generation Alpha includes those born between 2010 and 2024. The company has also been hit by President Trump's steep tariffs, which affect much of the merchandise that Claire's sources from outside the United States. Cheap goods from China, Indonesia and Cambodia have become more expensive to import under the new taxes. 'Claire's has to decide if they're going to pass the cost of the tariffs onto consumers,' Wimer said. 'Their customers probably aren't willing to spend more.' Claire's was founded in 1961 as a chain of wig stores in the southern U.S. before merging with Chicago-based Claire's Boutiques. The company eventually rebranded as Claire's and became a symbol for kitschy fashion and girlhood by the early 2000s.
