Claire's files for bankruptcy protection, but says stores will stay open
What's happening?
More retail woes, this time it's the parent company of Claire's Accessories that has filed for bankruptcy protection.
Claire's Stores confirmed in a statement it's making the move on Monday, as part of a financial restructuring that will "eliminate a substantial portion of debt."
The company says that unlike the struggles that have befallen other retailers recently, it's applying for bankruptcy from a "position of strength," noting it's still one of the world's leading jewelry and beauty retailers for young people – as well as the nation's largest ear-piercer.
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Claire's in Minnesota
Claire's has more than 20 stores in Minnesota, some of which are under its Icing brand.
This includes three outlets at the Mall of America and locations at prominent Twin Cities malls including Rosedale, Southdale, Ridgedale and Maplewood.
There shouldn't be any changes to those stores in the short term. Claire's says it will operate its business as usual during the restructuring process.
It's also working with bankruptcy courts to ensure it can continue to honor wages, benefits and crucial payments to vendors.
"The Company’s management is confident that, through the restructuring process, Claire’s will cement its position as one of the world’s leading specialty retailers of fashionable jewelry, accessories, and beauty products for young women, teens, “tweens” and kids for many years to come," it said.
