WASHINGTON (dpa-AFX) - Claire's, the American retailer popular for its tween jewelry and ear piercing, has filed for Chapter 11 bankruptcy protection, the latest retailer to fall into bankruptcy after Toys R Us and Sports Authority.
The retailer Monday said that its stores will remain open as it restructures its debt of $1.9 billion. The debts were accumulated after being taken over by Apollo Global Management in 2007.
The company operates 7,500 stores across the world and said international subsidiaries are not part of the US bankruptcy filings. It has pierced more than 100 million ears worldwide, according to court filings.
The retailer, like its peers, struggles as traffic to mall continues to decline with shoppers now preferring shopping online from the comfort of their home or office.
However, Claire's said it is 'confident' it will emerge from bankruptcy protection in September after reducing its debt by nearly $2 billion. The company said it can can compete with the switch of preference to online shopping as its 'iconic ear piercing services' can not be done online.
Toys R Us announced last week that it would close or sell all its stores after filing for Chapter 11 bankruptcy protection last year.
Copyright RTT News/dpa-AFX