Claire's has filed for bankruptcy. The hub for ear piercings at malls across America is the latest retailer to succumb to its massive pile of debt.

Claire's, which says it has pierced more than 100 million ears around the world, reached a restructuring agreement with its creditors. In a Chapter 11 bankruptcy filing on Monday, Claire's said it will reduce its debt by $1.9 billion. It held $2.1 billion in debt at the end of 2017.

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The company will continue to operate its approximately 1,600 Claire's and Icing brand stores in the United States during the bankruptcy process and expects to complete it by September. International stores are not part of the restructuring agreement.

"This transaction substantially reduces the debt on our balance sheet," Claire's CEO Ron Marshall said in a statement. "We will complete this process as a healthier, more profitable company." Marshall came from now-defunct bookstore chain Borders.

Claire's struggles stem from a deal it struck more than a decade ago that left it burdened with debt.

In 2007, Apollo Management, a private equity firm, bought Claire's for $3.1 billion and took the company private in what's known as a leveraged buyout.

Claire's could never escape its debt load. As traffic slowed to its brick-and-mortar stores, shoppers moved to digital channels and fast fashion chains such as H&M, Zara and Forever 21 chipped away at sales.

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Claire's joins a long line of retailers that have filed for bankruptcy in recent years, including Toys "R" Us, Payless Shoes, Gymboree, Rue21, The Limited and RadioShack.

Toys "R" Us, another company left deep in debt from a leveraged buyout, said last week that it was liquidating its 735 stores in the United States.

Claire's believes a lighter balance sheet will help it avoid Toys "R" Us' fate and still remain a "Girl's Best Friend." And the company says its business is Amazon-proof because you can't pierce your ears online.</s>Claire’s Stores Inc. has filed for chapter 11 bankruptcy and said it plans to lower its debt by about US $1.9 billion.

The company will continue to operate its approximately 1,600 Claire’s and Icing brand stores in the United States during the bankruptcy process and expects to complete it by September. International stores are not part of the restructuring agreement.

“This transaction substantially reduces the debt on our balance sheet,” Claire’s CEO Ron Marshall said in a statement. “We will complete this process as a healthier, more profitable company.”

Claire’s said it reached an agreement with creditors including Elliott Management Corp and Monarch Alternative Capital LP, which will provide it with about US $575 million in new capital.

Claire’s struggles stem from a deal it struck more than a decade ago that left it burdened with debt.

In 2007, Apollo Management, a private equity firm, bought Claire’s for US $3.1 billion and took the company private in what’s known as a leveraged buyout.</s>Claire’s Stores Inc., a national jewelry retail chain with a ubiquitous presence in shopping malls, has announced it is filing for Chapter 11 bankruptcy.

The Hoffman Estates, Illinois-based company, which operates more than 5,300 stores in the U.S. under the Claire’s and Icing brands, claims to be in 99 percent of the nation’s malls. Claire’s Stores Inc. held $2.1 billion in debt at the end of last year and vowed to reduce its debt by $1.9 billion. It reported a net income of $28.656 million for the 12 months ending Feb. 3.

In announcing its bankruptcy filing, the company said that “unlike other retailers that have come before it, Claire’s has commenced its restructuring process from a position of unique operational strength.” It added that it was enabling the Chapter 11 process to “effectuate a balance sheet – not an operational – restructuring.”

The company said that it had no plans to shutter its retail operations during the bankruptcy process. Regionally, Claire’s and Icing stores can be found at malls in Yonkers, White Plains, Jefferson Valley, New City, West Nyack, Stamford, Danbury and Trumbull.</s>A store that sells jewelry and accessories for girls and teens is the latest retailer to go to bankruptcy court seeking financial help to survive.

Claire’s Stores Incorporated on Monday filed to reorganize under Chapter 11.

The chain operates more than 2,500 stores around the world, including locations in the Eastwood, Southern Park, and Shenango Valley Malls as well as Grove City Premium Outlets.

Clarie's lists its debts and assets at between $1 billion and $10 billion.

With cash flow from its operations, coupled with restructuring agreement and $135 million in financing from Citi, Clair says it expects to eventually emerge from bankruptcy.

The company says it expects to operate its business as usual during the restructuring process.

Claire's is asking the court to approve existing agreements for employees wages and benefits.

In a statement issued by Clarie's, the company says it expects to continue growing in spite of the bankruptcy filing, with plans to grow by more than 4,000 stores this year.

Emphasizing the importance of its brick and mortar footprint, Claire’s says it is world’s leading ear piercer, having pierced 3,500,000 ears in the United States last year.

“The company’s iconic ear piercing services are unmatched and cannot be replicated online,” according to the media release.

This is just the latest of many bankruptcies filed by retailers, especially those based in shopping malls.

Claire's bankruptcy petition may be seen here.</s>NEW YORK -- Claire's, the jewelry chain that has pierced the ears of millions of teens, has filed for Chapter 11 bankruptcy protection in the U.S. but its Canadian and European stores are not involved.

The company said Monday its stores will remain open as it restructures its debt.

A Claire's spokesperson told The Canadian Press that the fashion and jewellery retailer's European and Canadian businesses are not involved in the U.S. Chapter 11 cases, and will continue operating without interruption.

Claire's is the latest retailer to seek bankruptcy protection, close stores or go out of business entirely.

Toys "R" Us announced last week that it would close or sell all its stores after filing for Chapter 11 bankruptcy protection last year.

Privately-held Claire's says it expects to emerge from bankruptcy in September.</s>NEW YORK - Claire's, the mall chain that has pierced the ears of millions of teens, has filed for Chapter 11 bankruptcy protection in the U.S. but its Canadian and European stores are not involved.

The company said Monday its stores will remain open as it restructures its debt.

A Claire's spokesperson told the Canadian Press that the fashion and jewellery retailer's European and Canadian businesses are not involved in the U.S. Chapter 11 cases, and will continue operating without interruption.</s>HOFFMAN ESTATES, Ill. (WROC/WFLA) – Claire’s, a jewelry chain and hub for ear piercings at malls across the country, has filed for Chapter 11 bankruptcy.

Claire’s, which says it has pierced more than 100 million ears around the world, reached a restructuring agreement with its creditors.

In a Chapter 11 bankruptcy filing on Monday, Claire’s said it will reduce its debt by $1.9 billion. It held $2.1 billion in debt at the end of 2017.

According to a statement on the company’s website, it is “pursuing a financial restructuring in order to eliminate a substantial portion of debt…”

The company will continue to operate its approximately 1,600 Claire’s and Icing brand stores in the United States during the bankruptcy process and expects to complete it by September, according to CNN.

Claire’s joins a long line of retailers that have filed for bankruptcy, including Toys “R” Us, Payless Shoes, Gymboree, Rue21, The Limited and RadioShack.</s>For four decades Claire’s jewelry chain has been a fixture at malls and shopping centers, piercing the ears of millions of American teenagers.

But the company, which says it has pierced more than 100 million ears worldwide, is now struggling financially, with a heavy debt burden. And like so many other retailers, it is looking for help in bankruptcy court.

On Monday, Claire’s filed for Chapter 11 bankruptcy protection in Delaware, hoping to shed $1.9 billion in debt and close some underperforming stores. The chain, which said it operates in 99 percent of American malls, selling low-priced cubic zirconia jewelry and other accessories, was purchased by the private equity firm Apollo Global Management for $3.1 billion in 2007.

Claire’s called the filing an attempt to restructure its balance sheet, not its operations. The company, which earned $29 million in profit last year and $1.3 billion in revenue, said that it was far healthier than fellow retailers that have also turned to bankruptcy — a growing list that includes mall regulars like Gymboree, the Limited and Payless Shoes.

Toys “R” Us, which often carried Claire’s products, said last week that it would liquidate or sell all of its 730 stores in the United States. Burdened with debt from a leveraged buyout in 2005, the toy giant struggled to adjust quickly enough to fast-changing consumer tastes and e-commerce encroachment.</s>March 19 (UPI) -- Fashion accessory retailer Claire's announced Monday it has filed for Chapter 11 bankruptcy protection.

The company, a fixture in shopping malls, primarily sells jewelry and accessories aimed at young women and teenage girls. News of the Claire's bankruptcy is the latest in a series of retail bankruptcies.

The filing by Claire's follows other recent financial reorganizations for companies like Gymboree, Sports Authority and Toys 'R' Us.

The company, which operates 7,500 stores under the Claire's and Icing brands, said it's decided on financial restructuring instead of liquidation, like Toys 'R' Us has done. It added that it has an agreement with first-lien creditors to provide $575 million in new capital.

The Chapter 11 process is expected to end in September, when about $1.9 billion in debt is anticipated to be eliminated, the company said in a statement Monday.

The restructuring plan only affects Claire's stores in the United States.

Once a publicly traded company, Claire's went private in 2007 in a $3.1 billion leveraged buyout and is controlled by private equity investment firm Apollo Global Management.</s>After months of speculation, teen mall staple Claire’s Stores Inc. today pulled the trigger, filing for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware.

The accessories store — known predominantly for its ear piercing business — joins an ever-growing list of teen mall favorites (Aeropostale, Bebe, BCBG, Wet Seal and Rue 21) that have taken their financial troubles to bankruptcy court in recent months.

For retailers clamoring to stay afloat, the list of challenges as well as the proposed resolutions have become all too familiar. The rapid rise of digital, the hard-to-match convenience and price offerings on Amazon and a general consumer shift toward experiential spending (versus buying products such as clothing, shoes and accessories) have shared the blame across the majority of retail Chapter 11 filings. Meanwhile, strategy for retailers has often involved pruning their store fleet, growing deeper in digital and a shuffling of leadership to reflect a greater omnichannel focus.

However, in court filings and a company release today, Claire’s sought to distinguish itself from peers that have taken the bankruptcy route, stating that it is “utilizing the Chapter 11 process to effectuate a balance sheet — not an operational — restructuring.”

“Unlike other retailers that have come before it, Claire’s has commenced its restructuring process from a position of unique operational strength,” the retailer, which has been saddled with debt stemming from a private equity buyout in 2007, wrote in a release. “Claire’s is growing, not shrinking, its business — the company expects its concessions business to grow by more than 4,000 stores in 2018.”

Claire’s further noted that it “continues to be the world’s leading ear piercer,” having punctured 3.5 million in fiscal 2017 in the United States alone and another 100 million worldwide.

“The company’s iconic ear piercing services are unmatched and cannot be replicated online,” it added.

Despite its insistence that it’s in a unique position compared with other Chapter 11 filers, Claire’s is joining a string of retailers that have sought court-level relief following a debt-heavy private equity buyout — insiders suggest such heavy debts have prevented many retailers from implementing the strategies needed to navigate retail’s digital evolution. Toys ‘R’ Us last week announced plans to shutter U.S. operations after being crushed under the weight of an unworkable debt load. (Payless ShoeSource last year also fell victim to a huge debt load and filed for bankruptcy but re-emerged in about four months.)

Claire’s said its bankruptcy would allow it to shed about $1.9 billion in debt and exit the legal process as a healthier company in September.
After struggling with debt from a leveraged buyout, Claire's files for chapter 11 bankruptcy in the United States. The company has issued a statement that it expects its stores to remain operational while it restructures its debt.