Economy

Retailer behind Claire's Accessories files for U.S. bankruptcy

Retailer behind Claire's Accessories files for U.S. bankruptcy

Claire's, a mall chain that has pierced the ears of millions of teens and has nine south Louisiana locations, has filed for Chapter 11 bankruptcy protection.

Doing business under the brand names of Claire's and Icing, the company is seeking Chapter 11 "in order to eliminate a substantial portion of debt" and position the company as one of the world's leading jewelry stores for young women.

Toys "R" Us first filed for bankruptcy in September and is now planning to liquidate and close or sell its 800 stores in the USA, according toThe Washington Post. For more information on Claire's locations, click the "Store locator" link on this page.

The accessories store - known predominantly for its ear piercing business - joins an ever-growing list of teen mall favorites (Aeropostale, Bebe, BCBG, Wet Seal and Rue 21) that have taken their financial troubles to bankruptcy court in recent months.

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Claire's reported on Monday that it is "confident" it will emerge from bankruptcy protection in September after having reduced its debt by almost $2 billion.

"Unlike other retailers that have come before it, Claire's has commenced its restructuring process from a position of unique operational strength", the retailer, which has been saddled with debt stemming from a private equity buyout in 2007, wrote in a release.

Ron Marshall, Claire's chief executive, said: "This transaction substantially reduces the debt on our balance sheet and will enhance our efforts to provide the best possible experience for our customers". It held $2.1 billion in debt at the end of 2017. LLC is serving as investment banker to Claire's; FTI Consulting, Inc.is serving as restructuring advisor to Claire's; Hilco Real Estate, LLC is serving as real estate advisor to Claire's; and Weil, Gotshal & Manges LLP is serving as legal counsel to Claire's.

Toys R Us is liquidating its stores after filing for bankruptcy in September.