A BELOVED mall-based retailer has filed for its second bankruptcy and is conducting some significant final sales.
It quickly became a favorite among consumers in the 1990s, but is now conducting mass closures after financial woes.
These struggles led hair, fashion, and piercing accessories company Claire’s, owned by parent company Claire’s Holdings LLC, to submit a Chapter 11 bankruptcy filing again on August 6.
Court documents revealed that Claire’s Holdings LLC has around $500 million in debt and about $1 billion to $10 billion in assets and liabilities, per CNBC.
Along with about 1,300 Claire’s stores, the parent company also owns 190 Icing stores, which offer jewelry and accessories for women, along with some bridal services and other merchandise.
Claire’s Holdings LLC has had difficulties making rent payments on some of the locations as of recent, according to Bloomberg.
Some payments were even allegedly skipped in June and July.
The second bankruptcy followed just weeks after, with CEO Chris Cramer noting in a statement that increased competition and changes in consumer spending toward e-commerce instead of brick-and-mortar retail were part of the reason for the filing.
This, along with Claire’s Holdings LLC’s “current debt obligations and macroeconomic factors.”
SAY GOODBYE
So far, 13 Claire’s and five Icing stores are confirmed to shutter as part of the bankruptcy proceedings.
Clearance sales up to 75% off on some merchandise either have already begun or will begin no later than September 7.
Claire’s Holdings LLC said more announcements for additional store closures would be coming soon, with 700 in total expected to be wiped out, per Retail Dive.
It also has yet to secure a buyer, according to what by Sarah Foss, global head of bankruptcy at Debtwire, told the publication.
“Although Claire’s retains flexibility to halt the store closing sales if a buyer emerges to purchase the company’s assets on a going-concern basis, it is unlikely that such a bidder will emerge,” Foss explained.
It’s also important to note that Claire’s 300 mini locations within Walmart stores will also be shuttering.
The partnership between the two brands began in 2018 after Claire’s Holdings LLC’s first bankruptcy the same year.
Claire’s and Icing Closure List
- Claire’s
- Montgomery, Alabama: Eastland Mall
- Newark, California: Newpark Mall
- Chicago, Illinois: Ford City Mall
- Lynnfield, Massachusetts: Market Street at Lynnfield
- Bay City, Michigan: Bay City Town Center
- Blaine, Minnesota: Northtown Mall
- Livingston, New Jersey: Livingston Mall
- Uniontown, Pennsylvania: Uniontown Mall
- Knoxville, Tennessee: Pinnacle at Turkey Creek
- Highland Village, Texas: Shops at Highland Village
- Park City, Utah: Junction Commons
- Provo, Utah: Provo Town Center
- Woodinville, Washington: Woodinville Plaza
- Icing
- Riverside, California: Galleria at Tyler
- Grand Rapids, Michigan: Woodland Mall
- Rochester, New York: Greece Ridge
- Abilene, Texas: Mall of Abilene
- Orem, Utah: University Orem
Credit: NewsNation
A restructuring plan took away $1.9 billion of Claire’s $2 billion in debt at the time.
Walmart also sells Claire’s products at over 2,500 stores, and those products are going on sale during the closures.
MACY’S MAINTAINED?
Claire’s also partnered with Macy’s for about 21 stop-in-shops in 2022.
At the time, retail experts hailed the decision for the 21 stop-in-shops as beneficial to Claire’s and Macy’s.
“Claire’s is a favorite destination for tweens and teens, adding locations inside Macy’s will give the retailer more exposure,” consultant and author Georganne Bender told Retail Dive.
“The best thing about this partnership is that Claire’s customers will be introduced to department store shopping.”
“That’s a needed win for Macy’s,” Bender added.
So far, there has been no mention of the 21 Claire’s spots within Macy’s stores closing.
The US Sun has contacted Claire’s Holdings LLC for more details.
A popular mattress retailer also filed for bankruptcy recently after almost 30 years.
After 125 years in business, a beloved grocery brand also went under in July.
