The Claire’s chain in bankruptcy in the United States and in several countries: News

The Claire’s costume jewelry group placed on Wednesday under the protection of the American bankruptcy law, known as Chapter 11, its American activities and several of its subsidiaries operating stores under brand Claire’s and Icing.

He clarified in a press release that a procedure in this sense would also be initiated in Canada. Similarly, without giving precision on the calendar.

The stores will remain open and the employees will continue to be paid, he noted.

Its French subsidiary has already been placed in receivership in July, the lawyer for staff representatives told AFP.

The decision to initiate bankruptcy procedure in the United States “is difficult but necessary. Furthermore, ” said Chris Cramer, boss of Claire’s since June 2024, quoted in a press release.

“Increased competition. However, consumer claire’s chain bankruptcy united states spending trends and continuous distance from street trade, associated with our current debt obligations and macroeconomic factors, require this measure,” he continued.

“We continue to conduct active discussions with potential strategic. Consequently, financial partners,” he said, evoking the determination of managers to carry out a “review of strategic alternatives”.

For Neil Saunders, director at Globaldata, this bankruptcy “is not really a surprise. The chain is overwhelmed by a cocktail of problems, both internal and external, which make its profitability impossible”.

“Reinventing oneself will be difficult in the current environment,” he said.

The new American customs duties seem to be the drop of too much. that “Claire’s is not able to manage effectively”, he adds, also mentioning the competition of new players targeting its young traditional customers, such as Lovisa, or Internet trade with Amazon at the top of the Gondole.

This is the second time that Claire’s has been under the protection of the Chapter 11. In 2018, she had already used this device to reduce a colossal debt by 2.1 billion dollars.

Created in 1961, Claire’s had been bought in 2007 by the investment company Apollo Global Management.

– About 3. 000 stores –

According to the dozens of documents filed Wednesday with a court of state bankruptcies of the Delaware, the investment company Elliott Management is now its largest shareholder with a cumulative participation of at least 39.61%.

In these hundreds of pages. it specifies in particular to employ around 7,000 people in the United States, including around 2,000 full-time and have a network of 1,350 shops. And its debt is between one and ten billion dollars, including more than 600 million due in 2026.

According to the claire’s chain bankruptcy united states Claire’s website. the group operates in total more than 2,750 stores in its name in seventeen countries in North America and Europe as well as 190 ICING stores in North America.

It also has more than 300 franchise stores in the Middle East. South Africa and sells its products in thousands of concessions worldwide.

The latest results available on its site focused on the fiscal fiscal year 2021. it was then unabled preliminary data: the group provided for net sales of $ 1.39 billion and an operating profit with comparable data between 273 and 277 million.

Solicited by AFP concerning in particular more recent data. the group has not been able to provide it at this stage.

In France. the Paris Economic Activities Tribunal opened on July 24 a receivership procedure, with a six -month observation period, according to the lawyer interviewed claire’s chain bankruptcy united states by AFP a few days later.

At the end of this observation period. Additionally, the court will decide whether a continuation plan is possible, with a possible buyer, or if a liquidation, synonymous with cessation of activity, must be pronounced.

Posted on August 6 at 8:23 p.m.

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