The cheap jewelry! And the millions and millions of ear piercings!
Those are just some things that come to mind when you think of Claire’s. And now, the iconic cheap jewelry giant has officially filed for bankruptcy protection in the U.S.
That’s right, the jewelry chain – which is popular among tweens and teens – is going bankrupt, Claire’s confirmed in a release on Monday, March 19.
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While its Canadian and European stores are not involved in the filing, according to the Canadian Press, Claire’s is undergoing a restructuring process to combat its substantial debt for “long-term success,” said the company.
“The Company’s management is confident that, through the restructuring process, Claire’s will cement its position as one of the world’s leading specialty retailers of fashionable jewelry, accessories, and beauty products for young women, teens, “tweens” and kids for many years to come,” said Claires.
Claire’s is the latest U.S. retailer to file for bankruptcy – mega toy store Toys “R” Us also recently announced its bankruptcy.
Despite this news, neither of the retailers will be shutting down stores in Canada anytime soon.
In fact, Claire’s is pretty optimistic. The company says it hopes to pay off its debts by Fall 2018.
The company cites online shopping as one of its greatest challenges – it competes with such platforms as Amazon and Etsy, as many accessories retailers do – in the face of its almost $2 billion in debt.
” […] Claire’s expects to complete the chapter 11 process in September 2018, emerge with over $150 million of liquidity, and reduce its overall indebtedness by approximately $1.9 billion,” said the company.
For now, we’ll just have to hope that more tweens and teens will still be able to go in for ear piercings and more in the coming years.