Are you a Claire’s customer? Then we have some bad news for you. The jewelry and fashion accessories chain has announced that it has filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code. This process includes the closure of several stores across the country. We’ll tell you which ones, so you can check if there’s one near you.
How many Claire’s stores will close?
According to the company, 18 stores are currently planned for closure, although more locations could be added later.
ALSO READ Kroger is closing more stores in the United States! Check out where!
Which Claire’s stores will close?
Claire’s Holdings LLC stated that the closures include stores from both the Claire’s and Icing brands. Here is the current list of affected locations:
Claire’s Stores
- Eastdale Mall, Montgomery, Alabama
- Newpark Mall, Newark, California
- Ford City Mall, Chicago
- Market Street, Lynnfield, Massachusetts
- Bay City Town Center, Bay City, Michigan
- Northtown Mall, Blaine, Minnesota
- Livingston Mall, Livingston, New Jersey
- Uniontown Mall, Uniontown, Pennsylvania
- Shops at Highland Village, Highland Village, Texas
- Pinnacle at Turkey Creek, Knoxville, Tennessee
- Junction Commons, Park City, Utah
- Provo Town Center, Provo, Utah
- Woodinville Plaza, Woodinville, Washington
Icing Stores
- Galleria at Tyler, Riverside, California
- Woodland Mall, Grand Rapids, Michigan
- Greece Ridge, Rochester, New York
- Mall of Abilene, Abilene, Texas
- University Orem, Orem, Utah
When will the Claire’s stores close?
The closures will be completed by September 7 of this year at the latest.
ALSO READ TJ Maxx will open new stores in the United States! List of locations
Why are Claire’s stores closing?
The company has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Delaware to maximize the value of its business. Its Canadian subsidiary also plans to pursue a similar proceeding in Ontario. The company aims to monetize its assets and continue exploring potential strategic partnerships. This decision responds to increasing competition, changes in consumer spending, declining foot traffic in physical stores, and economic pressures. Claire’s plans to secure liquidity during this process and stated that its North American stores will remain open and continue operating normally while the company explores future alternatives.
What is Chapter 11 of the U.S. Bankruptcy Code?
Chapter 11 allows companies to reorganize their debts, typically with the goal of continuing operations. It is one of the most complex bankruptcy procedures, in which the company must present a detailed reorganization plan and negotiate with creditors.
This legislation provides businesses with a chance for a fresh start, although it may also result in the partial transfer of asset ownership to creditors. As a result, business owners must carefully assess the costs and benefits before deciding to file for bankruptcy.
What benefits does Chapter 11 offer?
This section serves as an alternative to penalties, meaning that the company or individuals seeking it can avoid immediate dissolution, liquidation, and drastic cuts. During this process, the law allows the entity to continue operating and restructure without pressure from creditors. At the same time, it enables them to negotiate and propose a repayment plan for their debts.
Moreover, reorganization procedures under Chapter 11 offer the advantage that the company’s management retains control over the business, making the reorganization plans generally more effective, as the executives who stay in charge are the ones best familiar with the company, partnership, or individual involved.
