Overview

• On August 6, Claire’s filed for Chapter 11 in the U.S. Bankruptcy Court in Delaware and initiated creditor-protection proceedings in Canada under the CCAA.
• Court documents estimated the company’s assets and liabilities at between $1 billion and $10 billion and identified over 25,000 creditors.
• The retailer requested immediate liquidation of 18 underperforming stores and signaled plans to close up to 1,326 additional locations by October 31.
• Roughly 2,750 Claire’s stores and 190 Icing outlets worldwide will continue operating while its management and creditor-owners explore strategic alternatives.
• Heavy debt obligations, deferred interest on a $480 million loan and higher import costs from U.S. tariffs have eroded its traditional mall-based model.