Latest news with #MonarchAlternativeCapital
CNBC
2 hours ago
- Business
- CNBC
Mall staple Claire's has filed for bankruptcy twice. Here's what could happen to the brand now
Longtime mall staple Claire's has begun liquidating its stores after filing for bankruptcy for a second time in seven years. The tween accessories retailer was once a thriving retailer. From fiscal 2000 to fiscal 2007, the company grew its annual sales from $846 million to $1.48 billion. But by 2018 it had filed for bankruptcy protection for the first time. It was taken over by creditors Elliott Management Corporation and Monarch Alternative Capital, who eliminated $1.9 billion of debt. Despite some sales momentum in 2021, attempts by Claire's to modernize in an e-commerce world failed to re-energize the brand. Turnaround efforts over the past couple of years included expanding retail partnerships with companies such as Walgreens and Walmart, a loyalty program rollout, and investments in influencer-led content. But now the company is in need of saving once again. "Claire's was not immune from the continued trend away from brick and mortar and more recent macroeconomic challenges, including higher interest rates, labor costs and, most recently, tariffs," the company said in a bankruptcy declaration filed Wednesday. "While Claire's took many steps over the last few years to address these and other challenges, it was not enough to overcome the obstacles." At least nine other major retailers — including Party City, Z Gallerie, Forever 21 and Rite Aid — have filed for bankruptcy at least twice within the past 10 years. "What we're typically seeing in the last year are these repeat filers is that they are just liquidating and closing down their stores, maybe with some online presence continuing," said Sarah Foss, global head of legal at Debtwire. In its bankruptcy declaration, Claire's said it had contacted over 150 potential buyers in the months leading up to its bankruptcy and received multiple letters of intent, which it is continuing to negotiate. The deadline for a buyer to acquire the company is tentatively set for August 31. Josh Holmes, head of research at Retail Economics said its longstanding legacy in the American mall could help save it. "Its ear piercing service became a sort of rite of passage for many," Holmes said. "That nostalgia, the retro element is something I think actually does hold value and something that potential investors will look at and consider in terms of if they are to come in and rescue the brand." Watch the video to learn more.
Yahoo
4 days ago
- Business
- Yahoo
Claire's files for bankruptcy again as teen retailer faces second collapse in seven years
Claire's Stores Inc., once a teen retail staple, has filed for bankruptcy protection for the second time in seven years as it contends with significant debt. The retailer filed for Chapter 11 bankruptcy protection in a federal court in Delaware on Wednesday, highlighting the "difficulty facing mall-based retailers geared to the teen and tween customer," according to Sarah Foss, head of legal at Debtwire. In the filing with the U.S. bankruptcy court in Delaware, the U.S. firm, primarily owned by Elliott Management and Monarch Alternative Capital, estimated both its assets and liabilities at between $1 billion and $10 billion, underscoring the financial strain that led to its latest filing. Pressure From Shein, Temu Accelerate Retail Closures The filing comes shortly after the company tapped Houlihan Lokey Inc. to find potential buyers for some or all of Claire's locations, people familiar with the matter told Bloomberg. Claire's is also facing a $500 million loan that's due in December 2026, Bloomberg reported. It also decided to defer interest payments on its debt to help preserve capital. In better times, the store targeted a younger demographic with a wide selection of affordable jewelry, hair accessories and beauty products. Today, the retailer, which sources from China, is facing higher import costs due to President Trump's tariffs. Consumers are also curbing their spending in response to the current economic climate. Read On The Fox Business App Us Retail Closures Hit Highest Level Since Pandemic One of the company's other core challenges, according to Foss, is that its target demographic "is notoriously fickle and heavily influenced by the trends they are seeing online, leaving some of the mall mainstays like Claire's or Forever 21 struggling to keep up with the changing trends and preferences of its customer base." Claire's first filed for bankruptcy protection in March 2018/ Elliott and Monarch took control of the retailer when it emerged later that year. Foss said a bankruptcy filing can be a good option for a struggling retail chain as it allows a company to refocus, trim its debt and slim down its retail footprint, but "retailers that have emerged from Chapter 11 only to file again a few years later often find themselves liquidating and shutting their doors entirely, with some kind of online presence remaining." However, the company still hasn't filed a document outlining its proposed path in bankruptcy. The company operates under two brand names: Claire's and ICING. There are more than 2,750 Claire's stores in 17 countries throughout North America and Europe and 190 ICING stores in North America. There are more than 300 franchised Claire's stores, located primarily in the Middle East and South Africa. Claire's products are also sold in thousands of concessions locations in North America and Europe, according to its website. The company filed to go public in 2021, after its first attempt to list in 2013 failed. In June 2023, the company formally withdrew IPO plans, according to a filing with the U.S. Securities and Exchange Commission. Reuters contributed to this article source: Claire's files for bankruptcy again as teen retailer faces second collapse in seven years 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
Time of India
4 days ago
- Business
- Time of India
Jewelry retailer Claire's files for bankruptcy for the second time
Fashion jewelry retailer Claire's filed for bankruptcy protection in the United States on Wednesday, its second bankruptcy filing after 2018, with a plan to close hundreds of stores and find a buyer for about 800 remaining locations. The U.S.-based company has $690 million in debt, and it has suffered in recent years from increased competition, high rent costs, and new tariffs on imports from supplier nations like China, Thailand and Vietnam, according to documents filed with the U.S. bankruptcy court in Delaware. The retailer, backed by Elliott Management and Monarch Alternative Capital, operates more than 2,300 retail locations across 17 countries in North America and Europe, including Claire's stores, 210 Claire's locations embedded in Walmart stores, and 120 stores that operate under the Icing brand owned by Claire's. The company also operates 9,000 concessions kiosks within malls. The company has engaged with several interested bidders, but has not yet lined up a buyer that will keep Claire's retail locations in business. The company would have to close all of its locations if it cannot get a sale completed quickly, it said in court documents. Founded in 1961 in Chicago, Claire's sells necklaces, bracelets and accessories, including headphones and soft toys. American girls have often gotten their first ear piercings at Claire's, in a "rite of passage" that has lasted for decades, and the company says it has pierced over 100 million ears since 1978. The jewelry retailer filed for Chapter 11 bankruptcy in March 2018, and the company was strong for a couple of years, despite a dip in sales during the COVID-19 pandemic, according to its court filings. But its recent performance has suffered due to rising competition from online fashion and jewelry sellers like SHEIN and from specialty retailers that offer ear-piercing services, like Lovisa, Rowan, and Studs, according to Claire's court documents. Long-term declines in in-person shopping at malls have hurt Claire's particularly hard, the company said, since most of its core customers are girls and teenagers who depend on their parents to make purchases for them, according to court filings. The company has also struggled to maintain its supply chain and profitability in the face of President Donald Trump's tariff policy, which has disrupted imports from China and other Asian nations. Claire's imports over 56% of its jewelry from China, and Trump's tariffs have increased Claire's supply costs by over $30 million since April 2025, according to the company. Claire's filed to go public for the second time in late 2021 after its failed attempt to list in 2013. Claire's formally withdrew its IPO plans for the second time in June 2023, according to a filing with the U.S. Securities and Exchange Commission.
Irish Times
5 days ago
- Business
- Irish Times
Future of retailer Claires in Ireland in doubt as US parent files for bankruptcy protection
The future of almost 20 branches of fashion accessories retailer Claires in the Republic has once more been thrown into doubt after its US parent company filed for bankruptcy protection for the second time in less than 10 years. While all the stores contacted by The Irish Times on Wednesday morning remained open for business and were trading normally, the company's financial difficulties in the US are significant and reports from the UK say at least some of the stores on this side of the Atlantic could be at risk in the months ahead. Claire's filed for Chapter 11 bankruptcy protection in the US last night with a court filing pointing to a slowdown in consumer spending, leading to lower sales. The retailer, backed by Elliott Management and Monarch Alternative Capital, operates more than 2,750 stores across 17 countries in North America and Europe and listed its estimated assets and liabilities each between $1 billion and $10 billion (€860 million and $8.6 billion) in a filing with the US. bankruptcy court in Delaware. READ MORE The company said it has 25,001-50,000 creditors. The retailer's trading difficulties are understood to have been exacerbated by uncertainty surrounding the tariffs imposed on China by the US administration, which is likely to have seen its overheads increase substantially in recent months. Uncertainty as to how trade would be reshaped is only part of the problem faced by the company, which specialises in jewellery and accessories aimed at the teen and pre-teen market. It is the second time Claires has filed for Chapter 11 bankruptcy and it has also had two failed attempts at a stock market IPO. Restructuring firm Interpath was recently tasked by the parent company to find a buyer for the European operation but according to reports from the UK the company is struggling to find a financial backer for the hundreds of shops it operates across Europe, including in Ireland. One industry source played down the prospects of an immediate closure but told Sky News that as many as one third of its shops might be closed under a restructuring programme. The Irish Times contacted Interpath but a spokesman said the company was not in a position to comment 'at this time'.
Observer
5 days ago
- Business
- Observer
Jewelry retailer Claire's files for bankruptcy
Jewelry retailer Claire's filed for bankruptcy protection in the United States on Wednesday, its second bankruptcy filing since 2018, according to a court document, highlighting a slowdown in consumer spending that led to lower sales. The U.S.-based firm listed its estimated assets and liabilities between $1 billion and $10 billion in a filing with the U.S. bankruptcy court in Delaware. The retailer, backed by Elliott Management and Monarch Alternative Capital, operates more than 2,750 stores across 17 countries in North America and Europe, according to its website. Founded in 1961 in Chicago, Claire's sells necklaces, bracelets, and accessories, including headphones and soft toys. The company stated that it has 25,001-50,000 creditors, as indicated in a court filing. The jewelry retailer filed for Chapter 11 bankruptcy in March 2018, and filed to go public for the second time in late 2021 after its failed attempt to list in 2013. Claire formally withdrew its IPO plans for the second time in June 2023, according to a filing with the U.S. Securities and Exchange Commission.
