Morstaple Claire closes files for many stores, bankruptcy
Claire is seeking “strategic alternatives” through Chapter 11 bankruptcy, and plans to close 18 US stores as they navigate economic pressures.
After filing a second bankruptcy and saying that more than 1,100 stores could be closed soon, Claire announced on August 20 that he would sell the majority of his North American business to private equity firm Ames Watson.
In a news release, Claire said the sales were made to “maximise the value of the business” and to suspend liquidation sales at most stores. In a court application earlier this month, Claire CEO Chris Kramer said liquidation sales will continue until a buyer is found.
A buyer was found, but Claire announced that liquidation sales will continue at certain stores, but did not specify which locations will be affected.
“As we continue our restructuring process, our team has been working tirelessly to explore every option to maintain Claire’s business and brand value,” CEO Chris Kramer said.
According to documents filed in the Bankruptcy Court, the Illinois-based company, which operates 1,326 stores across the United States, is facing financial challenges due to an increase in first fashion brands such as Shane and Tem, as well as new tariffs from supplier countries, including China.
Claire will seek approval for the sale on August 21 at a court hearing held in Wilmington, Delaware.
Save closures during difficult times
As part of the ongoing bankruptcy process, 18 Clare-owned stores are expected to close by September 7th nationwide. A map of the closed stores can be found here. Search by city or state to find a local shop.
Founded in Chicago in 1961, Claire specializes in selling a variety of accessories, including necklaces, bracelets, headphones and soft toys. For many American girls, stabbing Claire in the first ear has become a “rite of passage” that has been going on for decades. The company claims it has stabbed more than 100 million people in ears since 1978.
Contributor: Mike Snyder, USA Today; and Reuters
Fernando Cervantes Jr. is a trending news reporter for USA Today. Contact him at fernando.cervantes @gannett.com and follow him at x @fern_cerv_.
