Claire’s, the iconic accessories retailer popular with tweens, plans to close more than 290 stores, including its Icing locations. The move comes after the brand filed Chapter 11 bankruptcy earlier this August, its second in seven years. The closure is a court-supervised restructuring effort.
Highlights
- Claire’s will be shutting down 291 stores after filing for bankruptcy.
- The closures will impact over 200 Claire’s stores across the U.S., along with 56 Icing locations.
- The decision aims to maximize the company’s overall business value.
Claire’s to Shutter Over 290 Stores Amid Bankruptcy Filing
Claire’s is known for its colorful, affordable accessories and fashion items that appeal to tweens. The mall boutique chain is shutting down several stores across the United States.
The court filing dated Monday, August 25, lists over 290 stores scheduled to close. The filing lists more than 200 Claire’s locations and over 50 Icing stores among those set to close. According to the filing, 830 stores, 785 Claire’s, and 45 Icing locations are expected to remain open.
The decision follows the company’s recent bankruptcy filing, in which it warned that over 1,100 stores could be forced to close without a buyer.
Initiates Chapter 11 to maximize Business Value
According to PRNewswire, Claire announced on August 6 that it had started voluntary Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware. The brand made the decision in an effort to optimize the overall value of its business.
These steps allow Claire’s to restructure its operations and explore potential partnerships to strengthen the business. It also included discussions with potential partners that were already underway before the filing.
On August 20, Claire’s signed an agreement with Ames Watson to sell its North American operations as part of its restructuring plan. Ames Watson is a private holding company focused on acquiring and transforming businesses for long-term value. It will acquire the brand’s North American operations.
The sale of Claire’s stores and intellectual property to Ames Watson is expected to support the company’s restructuring and help secure its long-term future.
The closure of over 200 stores marks a major change for Claire’s, but the brand is focused on restructuring and keeping its remaining locations open for the long term.
