Claire’s evaluates Chapter 11 filing as part of restructuring its U.S. operations

Claire’s is on the verge of default in the United States. The U.S. company is considering filing for bankruptcy proceedings for its business in its home market, hit by falling demand, rising import costs and debt pressure, according to Bloomberg.

In recent months, Claire’s Stores Inc, which specializes in selling accessories for teenagers, has been going through a process to clean up its finances and is considering the sale of part or all of its operations.

Claire’s is currently active in the United States, Canada and Europe, markets in which it has store networks. The company has not yet made a decision on the future of its business in the rest of its markets.

Claire’s has a network of 2,750 stores in seventeen countries

The accessories company has been experiencing difficulties since 2018, when it already filed for bankruptcy proceedings in the United States. At that time, the company’s owner, Apollo Global Management, transferred the asset to creditors, including Elliott Management and Monarch Alternative Capital.

Now, the company has been pressured by a cocktail of factors: a $477 million debt maturing in December 2026, falling consumption in the United States and, above all, rising costs resulting from the increase in tariffs imposed by the United States on China, Claire’s main supply market.

The company has a network of 2,750 stores in seventeen countries, as well as a presence in department stores in the United States and Europe and a network of more than 300 franchises in the Middle East and South Africa.

Founded in 1974, the company defines itself as a shopping destination for jewelry, cosmetics, accessories and piercing for girls and teens between the ages of 3 and 18. In addition to the Claire’s chain, the company owns Icing, which targets an older audience.