Another Retailer Has Officially Filed for Chapter 11 Bankruptcy
It seems like every week there's another popular retailer shutting down and/or filing for bankruptcy. Last week we discovered that it was the end for Toys R Us, which upset both parents and children alike. This week it's the popular mall jewelry store chain Clarie's that is fighting for survival. It was just announced this morning that the company has officially filed for Chapter 11 bankruptcy protection.
It's very rare to go to a mall and not spot a Claire's store. In fact, USA Today reports that there is one in almost 99% of malls across the U.S. The good news is that the retailer seems to be very hopeful that they will survive the bankruptcy, adding:
"Claire's said it would use the legal process to shed about $1.9 billion in debt and reemerge as a healthier company in September 2018, poised for a solid holiday shopping season."
Struggling malls and online competitors seem to be some of the main reasons for the loss of revenue for the company, which fell from $1.5 billion in 2014 to $1.3 billion in 2017. Claire's was actually profitable last year, but they are looking to restructure "before it's too late." It doesn't sound like they plan to close any stores, either, which is good for the thousands of people they employ.
As a kid, Claire's was everything to me. Probably around 75% of my purchases with my allowance were earrings from the store. I had HUNDREDS. I still shop there from time to time at age 26, but not liked I used to. Still, I would be bummed to see the retailer go. I hope they are able to keep things afloat!
Read more on the story HERE.
[Via USA Today]