Claire’s Holdings LLC and certain of its U.S. and Gibraltar-based subsidiaries (collectively Claire’s U.S.), the operator of Claire’s and Icing stores across the United States, announced that it has commenced voluntary Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware.

Its Canadian affiliate, operating stores across Canada, also intends to commence proceedings in Canada under the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice (Canadian Court).

This aims to maximize the value of its business. 

Chris Cramer, CEO of Claire’s, said, 

“This decision is difficult, but a necessary one. Increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire’s and its stakeholders. We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”

Claire’s retail stores in North America will remain open and continue to serve customers while the Company continues to explore all strategic alternatives. 

These proceedings will enable Claire’s to immediately commence the monetization process for its assets to maximize value for the business.

Claire’s will also continue an active and comprehensive review of strategic alternatives, including discussions with potential strategic partners that began before the filings.

Through the filing of customary “first day” motions with the U.S. Court and the Canadian Court, Claire’s intends to uphold its commitments to customers, employees, and partners, including continued payment of employee wages and benefits.