Claire’s, the jewelry chain that was once an inescapable part of life for many teens, filed for bankruptcy a second time on Wednesday, joining other retailers who have struggled amid the growth of online shopping and the uncertainty set off by tariffs.
The company filed for Chapter 11 bankruptcy protection in Delaware. It said in a statement that it also planned to start insolvency proceedings in Canada that would allow it to restructure.
“This decision is difficult, but a necessary one,” said Chris Cramer, Claire’s chief executive, adding that the company was discussing its future with “potential strategic partners.” He cited increased competition, consumer spending trends and the company’s debt obligations. Stores in North America will remain open as the company explores alternatives, the statement said.
Claire’s, which is based in Hoffman Estates, Ill., operates more than 2,750 stories in 17 countries across North America and Europe, according to its website. It also owns ICING, a women’s jewelry brand that operates 190 locations.
The company had estimated liabilities of $1 billion to 10 billion, according to the court filing. The company said it had 25,000 to 50,000 creditors.
The company began as a chain of wig stores in 1961 before combining with a small chain called Claire’s Boutiques. It operated as Claire’s Accessories until the late 1990s, and established itself over the years as the mall spot for American teenagers and preteens to shop and pierce their ears.
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The post Claire’s, Teen Jewelry Chain, Files for Bankruptcy a 2nd Time appeared first on New York Times.
