The teen accessories retailer Claire, based in the shopping center, who is known to bring millions of teenagers into an important transitional rite-but piercing, but has now struggled with a large debt load and the changing consumer taste, has applied for the insolvency protection of chapter 11.
Claires Holdings LLC and certain that the US and Gibraltar-based subsidiaries together Claires made American operators of Claire and Icing stores in the United States on Wednesday to submit to the US bankruptcy in Delaware. That marked that second time since 2018 And for a similar reason: high debt load and the shift between teenagers that are online from physical business.
The submission of Claires Chapter 11 follows the insolvencies of other young retailers, including Forever 21, which were submitted for bankruptcy protection in March for the second time And finally his US business is closed because the traffic in the US shopping centers fades and the competition of online individual dealers and how faded AmazonTemu and Shein intensified.
Claire, founded in Hoffman Estates, Illinois and founded in 1974, said that his business in North America will remain open and continue to serve customers while examining all strategic alternatives. Claire’s operates more than 2,750 Claires shops in 17 countries in North America and Europe and 190 in North America.
In a court registration, Claire said that his assets and liabilities were between $ 1 billion and $ 10 billion.
“This decision is difficult, but a necessary one,” said Chris Cramer, CEO of Claire, in a press release published on Wednesday. “Increased competition, trends of consumer expenditure and the persistent departure from inpatient retail in combination with our current debt obligations and macroeconomic factors requires this procedure for claires and its stakeholders.”
Like many retailers, Claire’s fought with higher costs associated with President Donald Trump Tariff Plans, said analysts.
Cramer said that the company continues to be in “active discussions” with potential strategic and financial partners. He found that the company is still obliged to operate its customers and to work with its suppliers and landlords in other regions. Claire also intends to continue to pay the wages and benefits of the employees, and a permit for the use of cash authorities will obtain their business.
Neil Saunders, Managing Director of Globaldata, a research company, is in a note published on Wednesday, which was published on Wednesday, as a “no real surprise”.
“The chain was flooded by an internal and external cocktail with problems, which made it impossible to stay over water,” he wrote.
Saunders noticed that Claire had to struggle with a high level of debt, which made his business unstable, and said that the Cash Crunch had left it back with little choice, but was reorganized by bankruptcy.
He also noted that the tariffs increased the costs higher, and he believed that Claire was unable to effectively master this latest challenge.
The competition has also become sharper and more intensive in recent years. Retailers such as the Lovisa jewelry chain offer younger buyers a more demanding range at low prices. He also quoted the growing competition with online players like Amazon.
“Reinvention will be a large order in the current environment,” he added.
