STREAMING NOW: Watch Now

Claire's files for bankruptcy

Claire's has filed for bankruptcy. The hub for ear piercings at malls across America is the latest retailer to succum...

Posted: Mar 19, 2018 2:22 PM
Updated: Mar 19, 2018 2:22 PM

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 by debt $1.9 billion. It held $2.1 billion in debt at the end of 2017.

Related: Toys 'R' Us will close or sell all US stores

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.

Claire's struggles stem from a deal it struck more than a decade ago that left it burdened with debt.

In 2007, Apollo Management, a private equity firm, bought Claire's for $3.1 billion and took the company private in what's known as a leveraged buyout.

Claire's could never escape its debt load. As traffic slowed to its brick-and-mortar stores, shoppers moved to digital channels and fast fashion chains such as H&M, Zara and Forever 21 chipped away at sales.

Related: Amazon didn't kill Toys 'R' Us. Here's what did

Claire's joins a long line of retailers that have filed for bankruptcy in recent years, including Toys "R" Us, Payless Shoes, Gymboree, Rue21, The Limited and RadioShack.

Toys "R" Us, another company left deep in debt from a leveraged buyout, said last week that it was liquidating its 735 stores in the United States.

Claire's believes a lighter balance sheet will help it avoid Toys "R" Us' fate and still remain a "Girl's Best Friend." And the company says its business is Amazon-proof because you can't pierce your ears online.

Huntsville
Few Clouds
78° wxIcon
Hi: 89° Lo: 66°
Feels Like: 80°
Florence
Clear
73° wxIcon
Hi: 88° Lo: 69°
Feels Like: 73°
Fayetteville
Clear
75° wxIcon
Hi: 88° Lo: 65°
Feels Like: 75°
Decatur
Scattered Clouds
74° wxIcon
Hi: 87° Lo: 66°
Feels Like: 74°
Scottsboro
Few Clouds
73° wxIcon
Hi: 90° Lo: 68°
Feels Like: 73°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 54768

Reported Deaths: 1096
CountyConfirmedDeaths
Jefferson6746170
Mobile4904140
Montgomery4547112
Tuscaloosa269053
Madison22689
Marshall198011
Shelby169125
Lee159637
Morgan13385
Baldwin127711
Walker107532
Elmore106721
Etowah101114
Dallas10029
DeKalb9677
Franklin93816
Autauga69815
Russell6860
Unassigned67928
Chambers67730
Butler65229
Limestone6393
Tallapoosa63069
Cullman6156
Houston6077
Lauderdale5776
St. Clair5443
Calhoun5155
Colbert5096
Escambia4888
Lowndes48422
Pike4795
Jackson4352
Coffee4284
Covington41612
Talladega4017
Barbour3992
Dale3951
Bullock37810
Hale35423
Marengo35411
Chilton3312
Blount3201
Clarke3176
Wilcox3038
Winston2995
Sumter29213
Marion29014
Pickens2746
Randolph2639
Monroe2603
Perry2502
Conecuh2318
Bibb2241
Macon2199
Choctaw21712
Greene1989
Henry1553
Washington1488
Lawrence1360
Crenshaw1323
Cherokee1247
Geneva980
Lamar891
Clay852
Fayette851
Coosa661
Cleburne451
Out of AL00

Tennessee Coronavirus Cases

Confirmed Cases: 61960

Reported Deaths: 741
CountyConfirmedDeaths
Shelby13594224
Davidson13309143
Rutherford360239
Hamilton336438
Sumner194556
Williamson176316
Knox16209
Trousdale15105
Out of TN141610
Wilson118717
Putnam10197
Bradley9724
Robertson94813
Sevier9123
Unassigned8902
Montgomery7787
Tipton6987
Lake6960
Bledsoe6291
Bedford6249
Macon6037
Hamblen4744
Maury4623
Hardeman4184
Fayette3705
Madison3632
Rhea3430
Blount3393
Loudon3282
Dyer2923
McMinn28419
Cheatham2753
Dickson2750
Washington2620
Lawrence2396
Cumberland2214
Sullivan2214
Anderson2002
Jefferson1871
Lauderdale1824
Gibson1811
Smith1602
Monroe1556
Greene1512
Coffee1430
Cocke1380
Hardin1287
Warren1270
Obion1243
Haywood1213
Marshall1182
Franklin1163
Wayne1160
McNairy1071
Carter1052
Giles1051
Hickman1050
Marion954
Hawkins912
Lincoln870
White863
DeKalb850
Roane850
Henderson740
Weakley741
Overton731
Campbell701
Chester690
Claiborne680
Grundy652
Unicoi580
Grainger560
Polk550
Crockett543
Henry530
Carroll521
Cannon500
Sequatchie490
Humphreys472
Jackson470
Johnson460
Meigs380
Perry380
Morgan321
Decatur290
Scott280
Fentress270
Stewart260
Union240
Moore210
Clay200
Houston200
Benton151
Hancock120
Lewis110
Van Buren90
Pickett70

 

 

Community Events