Claire’s Holdings LLC has announced its filing for bankruptcy protection in the United States, with plans to do the same in Canada shortly. The popular accessories and cosmetics retailer will submit a filing with the Ontario Superior Court under the Companies’ Creditors Arrangement Act.
Despite the bankruptcy filing, Claire’s stores in North America will continue to operate as the company commences the process. This strategic move aims to facilitate the monetization of its assets and explore various options for the business’s future. Claire’s CEO, Chris Cramer, emphasized that the decision to seek creditor protection was challenging yet necessary.
The company attributed the bankruptcy filing to heightened competition, evolving consumer spending patterns, and the ongoing transition away from traditional retail models. Established in 1974, Claire’s boasts over 2,750 stores across 17 countries in North America and Europe. The brand is renowned for its wide range of jewelry, cosmetics, and accessories tailored to girls aged three to 18, along with its popular ear-piercing services targeted at teenagers.