Mall Staple Claire’s Files For Chapter 11 Bankruptcy
Discount jewelry chain Claire’s filed for Chapter 11 bankruptcy on Monday.
The store, which is popular with teenagers, is the latest in a string of once-popular brick and mortar retailers that are now struggling as online sales cut into their sales. Another retail chain, Toys R Us, recently announced it would shutter all of its stores after it was unable to successfully restructure its business after filing for Chapter 11 late last year.
Claire’s, known for its ear-piercing program, operates in 99% of U.S. malls, according to the company’s court filing. It has pierced more than 100 million ears worldwide.
The retailer currently has 7,500 locations in 45 different countries and employs roughly 17,000 people, USA Today reports. Over 5,300 of those retail locations are located in the U.S.
The bankruptcy filing, hinted at earlier this month, will allow Claire’s to reduce its debt by $1.9 billion. The company has not announced the closure of any of its stores and has said that it will eventually emerge from the bankruptcy as a successful company.
Despite its growing competition from online retailers like Amazon, Claire’s thinks it has one thing that will keep it going: You can’t pierce your ears online.