In recent days, retail stores have had a difficult time staying afloat in the industry against online competitors like Amazon. Shoppers continue to gravitate towards the convenience of purchasing items from the comfort of their home, or remotely, rather than taking the trip to a physical retail location.
Toys ‘R’ Us is one of several stores that recently announced their bankruptcy filing and store closures. In 2017, Charming Charlie, Sears, and Walgreens also announced a massive amount of store closures.
Claire’s, a popular fashion store for young girls, teenagers, and young women, is the latest American retailer to join the long line of retail businesses facing trouble in the industry. In addition to selling a variety of jewelry, fashion accessories, nail polishes, and toys, Claire’s is also well-known for their ear piercing services.
According to TODAY, Clarie’s Stores Inc. will reportedly file for Chapter 11 bankruptcy.
Chapter 11 bankruptcy is also known as “reorganization” bankruptcy, according to the United States Courts website. This means that Claire’s will initially be able to keep their stores open unless a long-term plan calls for store closures.
Claire’s announcement came in response to the company dealing with a massive amount of debt. Currently, Claire’s has more than $1.4 billion in debt, reported Bloomberg.
After news about the bankruptcy went public, the internet went wild over Clarie’s potentially going out of businesses in the future.
Claire’s also made national headlines last year after the retailer issued a massive recall due to a concerning discovery in their makeup line.
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In other consumer news, a massive food recall has left 62 people hospitalized and 170 others sickened.