HOFFMAN ESTATES, ILL. — Claire’s U.S., the operator of Claire’s and Icing stores across the United States, has filed for Chapter 11 bankruptcy protection in Delaware. The jewelry retailer listed both its liabilities and assets between $1 billion to $10 billion.
Hoffman Estates-based Claire’s previously filed for Chapter 11 bankruptcy in 2018. Claire’s says that the proceedings will enable the company to immediately commence the monetization process for its assets to maximize value for the business. The retailer is continuing a comprehensive review of strategic alternatives, including discussions with potential partners that began prior to the filings.
“This decision is difficult, but a necessary one. Increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire’s and its stakeholders,” says Chris Cramer, CEO of Claire’s.
Claire’s retail stores in North America will remain open and continue to serve customers. However, in its bankruptcy filings the retailer noted 18 Claire’s and Icing stores that “should be exited” and is requesting the approval of store closing sales. These include:
- Market Stret at Lynnfield in Lynnfield, Mass.
- Woodinville Plaza in Woodinville, Wash.
- Galleria at Tyler in Riverside, Calif. (Icing)
- Provo Town Center in Provo, Utah
- Newpark Mall in Newark, Calif.
- Shops at Highland Village in Highland Village, Texas
- Mall of Abilene in Abilene, Texas (Icing)
- Greece Ridge in Rochester, N.Y. (Icing)
- Pinnacle at Turkey Creek in Knoxville, Tenn.
- Union Town Mall in UnionTown, Pa.
- Ford City Mall in Chicago
- Northtown Mall in Blaine, Minn.
- Bay City Town Center in Bay City, Mich.
- Eastdale Mall in Montgomery Ala.
- Junction Commons in Park City, Utah (Icing)
- University Orem in Orem, Utah (Icing)
- Woodland Mall in Grand Rapids, Mich. (Icing)
- Livingston Mall in Livingston, N.J.
Claire’s U.S. intends to seek approval for a consensual use of cash collateral to ensure it has the liquidity necessary to support its operations.
Kirkland & Ellis LLP is serving as legal counsel to Claire’s. Houlihan Lokey is serving as the retailer’s investment banker, and Alvarez & Marsal is serving as restructuring advisor. Osler, Hoskin & Harcourt LLP is serving as Canadian legal counsel, as Claire’s also intends to commence bankruptcy proceedings in Canada.
Known as a mall staple, Claire’s offers jewelry, cosmetics, accessories and ear piercing for tweens, teens and young girls up to 18 years old. There are roughly 2,750 Claire’s stores worldwide.
Icing is a jewelry, accessories and cosmetics store for young women between 18 and 35 years of age. There are 190 Icing stores across North America.
— Kristin Harlow