Longtime mall staple Claire’s has begun liquidating its shops after submitting for bankruptcy for a second time in seven years.
The tween equipment retailer was as soon as a thriving retailer. From fiscal 2000 to fiscal 2007, the corporate grew its annual gross sales from $846 million to $1.48 billion. But by 2018 it had filed for bankruptcy safety for the primary time. It was taken over by collectors Elliott Management Corporation and Monarch Alternative Capital, who eradicated $1.9 billion of debt.
Despite some gross sales momentum in 2021, makes an attempt by Claire’s to modernize in an e-commerce world did not re-energize the model.
Turnaround efforts over the previous couple of years included increasing retail partnerships with corporations resembling Walgreens and Walmart, a loyalty program rollout, and investments in influencer-led content material.
But now the corporate is in want of saving as soon as once more.
“Claire’s was not immune from the continued trend away from brick and mortar and more recent macroeconomic challenges, including higher interest rates, labor costs and, most recently, tariffs,” the corporate stated in a bankruptcy declaration filed Wednesday. “While Claire’s took many steps over the last few years to address these and other challenges, it was not enough to overcome the obstacles.”
At least 9 different main retailers — together with Party City, Z Gallerie, Forever 21 and Rite Aid — have filed for bankruptcy a minimum of twice inside the previous 10 years.
“What we’re typically seeing in the last year are these repeat filers is that they are just liquidating and closing down their stores, maybe with some online presence continuing,” stated Sarah Foss, world head of authorized at Debtwire.
In its bankruptcy declaration, Claire’s stated it had contacted over 150 potential consumers within the months main as much as its bankruptcy and obtained a number of letters of intent, which it’s persevering with to barter. The deadline for a purchaser to amass the corporate is tentatively set for August 31.
Josh Holmes, head of analysis at Retail Economics stated its longstanding legacy within the American mall may assist reserve it.
“Its ear piercing service became a sort of rite of passage for many,” Holmes stated. “That nostalgia, the retro element is something I think actually does hold value and something that potential investors will look at and consider in terms of if they are to come in and rescue the brand.”