Some Claire's, Icing stores set to close after bankruptcy filing: court docs
(NEXSTAR) — More than a dozen Claire's stores, as well as a few Icing locations, are set to close in the coming weeks after the former filed for bankruptcy.
Illinois-based Claire's, which also operates Icing, announced Wednesday that it was voluntarily beginning Chapter 11 bankruptcy proceedings "to maximize the value of its business."
"This decision is difficult, but a necessary one," Chris Cramer, CEO of Claire's, said in a press release, citing pressure from "increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail," as well as debt obligations and "macroeconomic factors."
"We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives," he added.
In the same press release, the company said Claire's stores "will remain open." Court documents filed the same day, however, identified 18 stores — five Icing stores and 13 Claire's locations — across 13 states for potential closure.
These stores were previously identified as locations that "should be exited," court documents explain.
Alabama
- 3518 Eastdale Mall, Montgomery
California
- 8042 Galleria at Tyler, Riverside (Icing)
- 5586 Newpark Mall, Newark
Illinois
- 5307 Ford City Mall, Chicago
Massachusetts
- 3358 Market Street at Lynnfield, Lynnfield
Michigan
- 5896 Bay City Town Center, Bay City
- 3422 Woodland Mall, Grand Rapids (Icing)
Minnesota
- 6684 Northtown Mall, Blaine
New Jersey
- 6373 Livingston Mall, Livingston
New York
- 8456 Greece Ridge, Rochester (Icing)
Pennsylvania
- 5406 Union Town Mall, Union Town
Tennessee
- 5368 Pinnacle at Turkey Creek, Knoxville
Texas
- 6252 Shops at Highland Village, Highland Village
- 8615 Mall of Abilene, Abilene (Icing)
Utah
- 6705 Provo Town Center, Provo
- 6233 Junction Commons, Park City
- 8668 University Orem, Orem (Icing)
Washington
- 722 Woodinville Plaza, Woodinville
Store closing sales are expected to end no later than September 7, should the filing receive approval.
Claire's, well-known for its affordable jewelry and accessories, as well as its piercing service, previously filed for bankruptcy protection in 2018. According to CNBC, the retailer is facing a similar burden now, namely a steep debt load. Tariffs and increased competition are adding to the pressure now.
Currently, Claire's has about $500 million in debt and between $1 billion and $10 billion in assets and liabilities. Citing court documents, CNBC reports Claire's is exploring a sale of its assets.
Other retailers that have filed for bankruptcy this year include At Home and JOANN. Fellow mall-focused stores, like Torrid, have also been forced to close dozens of stores.