Claire’s, the fashion and accessories retailer that has been a staple of American malls for decades, has filed for Chapter 11 bankruptcy protection for a second time.
The retail chain, aimed at the teen and tween market, has been struggling with the same headwinds faced by many brick-and-mortar businesses, including the broader shift to online shopping, increased competition, rising prices, and an unsustainable debt load.
In a press release on Wednesday, parent company Claire’s Holdings LLC said it will use the Chapter 11 process to “maximize the value” of its business. That includes exploring a potential sale.
“We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives,” Claire’s CEO Chris Cramer said in a statement.
Which Claire’s stores are closing?
While Claire’s said its North American stores will remain open as part of the Chapter 11 process, it’s likely that many will not survive as the company reviews its physical footprint and assesses which locations may be underperforming.
In fact, in a bankruptcy court filing, Claire’s says it has already reviewed its lease portfolio and decided that some stores “should be exited.”
The filing identifies 18 locations across numerous states that will immediately begin store closing sales:
- Market Street at Lynnfield Claire’s Lynnfield Massachusetts
- Woodinville Plaza Claire’s Woodinville Washington
- Galleria at Tyler-ICG Icing Riverside California
- Provo Town Center Claire’s Provo Utah
- Newpark Mall Claire’s Newark California
- Shops at Highland Village Claire’s Highland Village Texas
- Mall of Abilene (ICG) Icing Abilene Texas
- 8456 Greece Ridge (ICG) Icing Rochester New York
- Pinnacle at Turkey Creek Claire’s Knoxville Tennessee
- Union Town Mall Claire’s UnionTown Pennsylvania
- Ford City Mall Claire’s Chicago Illinois
- Northtown Mall Claire’s Blaine Minnesota
- Bay City Town Center Claire’s Bay City Michigan
- Eastdale Mall Claire’s Montgomery Alabama
- Junction Commons Claire’s Park City Utah
- University Orem (ICG) Icing Orem Utah
- Woodland Mall (ICG) Icing Grand Rapids Michigan
- Livingston Mall Claire’s Livingston New Jersey
Closing sales were expected to begin as early as July 25 and conclude no later than September 7.
The filing also lists additional stores that are expected to be added to the closing list as part of Claire’s agreement with a liquidation firm. The list includes 1,326 locations that could be closed by October 31.
Reached for comment, a spokesperson for Claire’s referred Fast Company to Wednesday’s press release but did not comment on a more specific timeline for the store closures or whether additional stores will be added to the list.
This story is developing…
