Claire’s Files For Chapter 11 Bankruptcy
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March 19, 2018Man. The hits just keep coming for us ’90s kids.
Claire’s has filed for Chapter 11 bankruptcy.
^^ 10-year-old me
Claire’s was my JAM. There’s a reason my mother can’t stand that store to this day. I tortured her. Claire’s was there for all my weird fashion phases. I was really into big, hideous bead necklaces in middle school, and Claire’s was there for me.
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.
This doesn’t necessarily mean that Claire’s is completely disappearing, so little girls of the world, DO NOT LOSE HOPE YET!
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.
A lot of the reason Claire’s is struggling? Because Claire’s is a mall-oriented store, and not as many people are spending mad money at malls these days.
The changes are significant for a chain that’s closely associated with enclosed suburban malls. Generations of American girls went to Claire’s to have their ears pierced and browse the selection of jewelry, headbands and other accessories. With foot traffic slowing at many U.S. malls, the company now hopes to catch customers at the local drugstore or supermarket.
“You can have the right product, but if no one is coming to see the store, how are you going to sell it?” said Poonam Goyal, a retail analyst at Bloomberg Intelligence. “You want to be where the traffic is, and the mall is less and less where people go.”
I’ve heard some people say that malls will eventually cease to exist. I immediately rejected that idea. There’s no WAY, right? I’m an avid shopper. No malls? That would be devastating. Then I realized I was part of the problem. I went to a mall last weekend. I can’t remember what I was looking for– shoes maybe? I couldn’t find the ones I wanted, and when I finally did, my first reaction was, “Hold on. Lemme check Amazon to see if I can find a better deal.” And what do you know? I did. And that’s what a LOT of people do these days.
I’ll admit it. I still buy cheap stuff from Claire’s or Icing every now and then. But last week, I ordered a 6-pack of chokers on Amazon– different designs and everything– for the price of ONE at Claire’s.
In other words, I am directly responsible for killing Claire’s. I am sorry kids, but Amazon is where it’s at.
h/t CNN Money
