March 20 2018

Claire's Stores Files for Chapter 11 Bankruptcy

By: BNEWS

A well known and historically popular jewelry store that specializes in piercings that has locations in malls around the country and internationally, including the Burlington Mall, has filed for bankruptcy.

 

The mall jewelry train Claire’s Stores filed for Chapter 11 bankruptcy protection on Monday with the hopes of escaping massive debts, USA Today reported.

 

Claire’s joins other stores as being a victim of a string of private equity buyouts orchestrated by outside investors who accumulated debt a decade ago and saddled retailers with difficult-to-meet payments. Most recently Toy R Us announced it would close its retail stores due to such debt.

 

According to the report, Claire’s said it would use the bankruptcy filing to shed roughly $1,9 billion in debt and re-emerge as a stronger company this fall, just in time for the holiday shopping season. The retailer said it was “confident” it will survive the bankruptcy.

 

Claire’s has roughly 7,500 locations in 45 countries and employs about 17,000 people. It says it has no plans to close any locations at this time.

 

 
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