Claire's files for bankruptcy

Claire's has filed for bankruptcy. The hub for ear piercings at malls across America is the latest retailer to succum...

Posted: Mar 19, 2018 2:22 PM
Updated: Mar 19, 2018 2:22 PM

Claire's has filed for bankruptcy. The hub for ear piercings at malls across America is the latest retailer to succumb to its massive pile of debt.

Claire's, which says it has pierced more than 100 million ears around the world, reached a restructuring agreement with its creditors. In a Chapter 11 bankruptcy filing on Monday, Claire's said it will reduce its by debt $1.9 billion. It held $2.1 billion in debt at the end of 2017.

Related: Toys 'R' Us will close or sell all US stores

The company will continue to operate its approximately 1,600 Claire's and Icing brand stores in the United States during the bankruptcy process and expects to complete it by September. International stores are not part of the restructuring agreement.

"This transaction substantially reduces the debt on our balance sheet," Claire's CEO Ron Marshall said in a statement. "We will complete this process as a healthier, more profitable company." Marshall came from now-defunct bookstore chain Borders.

Claire's struggles stem from a deal it struck more than a decade ago that left it burdened with debt.

In 2007, Apollo Management, a private equity firm, bought Claire's for $3.1 billion and took the company private in what's known as a leveraged buyout.

Claire's could never escape its debt load. As traffic slowed to its brick-and-mortar stores, shoppers moved to digital channels and fast fashion chains such as H&M, Zara and Forever 21 chipped away at sales.

Related: Amazon didn't kill Toys 'R' Us. Here's what did

Claire's joins a long line of retailers that have filed for bankruptcy in recent years, including Toys "R" Us, Payless Shoes, Gymboree, Rue21, The Limited and RadioShack.

Toys "R" Us, another company left deep in debt from a leveraged buyout, said last week that it was liquidating its 735 stores in the United States.

Claire's believes a lighter balance sheet will help it avoid Toys "R" Us' fate and still remain a "Girl's Best Friend." And the company says its business is Amazon-proof because you can't pierce your ears online.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 60101

Reported Deaths: 1689
CountyConfirmedDeaths
Hennepin19057831
Ramsey7444265
Dakota4334104
Anoka3618114
Stearns288620
Washington207744
Nobles17626
Olmsted171823
Scott153218
Mower10992
Rice10298
Blue Earth9115
Wright8695
Carver8413
Clay77940
Sherburne7188
Kandiyohi6891
St. Louis52119
Lyon4263
Todd4242
Freeborn3591
Steele3451
Nicollet33313
Benton3203
Watonwan3080
Winona25916
Crow Wing23214
Beltrami2230
Le Sueur2171
Martin2075
Chisago1991
Otter Tail1933
Goodhue1929
Cottonwood1770
McLeod1730
Pipestone1559
Becker1521
Polk1504
Waseca1480
Douglas1391
Itasca13812
Unassigned13741
Carlton1350
Pine1290
Dodge1260
Isanti1230
Murray1221
Chippewa1031
Wabasha910
Morrison891
Brown882
Faribault870
Meeker852
Rock830
Sibley832
Jackson810
Koochiching773
Pennington751
Mille Lacs713
Cass692
Fillmore640
Renville635
Lincoln570
Grant533
Swift521
Yellow Medicine520
Roseau470
Pope460
Aitkin401
Houston390
Norman390
Redwood360
Kanabec341
Wilkin343
Hubbard330
Marshall300
Mahnomen261
Wadena260
Red Lake240
Big Stone220
Lake200
Stevens180
Clearwater140
Traverse100
Lac qui Parle70
Cook30
Kittson30
Lake of the Woods20

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 48398

Reported Deaths: 925
CountyConfirmedDeaths
Polk10223207
Woodbury371652
Black Hawk311566
Linn234887
Johnson206719
Dallas187835
Buena Vista179112
Scott171614
Dubuque166531
Marshall143826
Pottawattamie131426
Story116014
Wapello88133
Muscatine84648
Webster8017
Crawford7273
Sioux6253
Cerro Gordo60917
Warren5571
Tama54929
Jasper47626
Wright4651
Plymouth4579
Dickinson3804
Clinton3793
Louisa37814
Washington29810
Boone2553
Hamilton2461
Franklin23910
Bremer2247
Clarke1993
Emmet1914
Carroll1881
Clay1861
Shelby1831
Hardin1780
Des Moines1692
Marion1690
Poweshiek1578
Benton1551
Allamakee1544
Floyd1532
Jackson1511
Mahaska13917
Cedar1311
Guthrie1315
Jones1302
Buchanan1271
Hancock1222
Butler1212
Henry1203
Madison1182
Pocahontas1152
Lee1133
Lyon1132
Delaware1111
Cherokee1081
Humboldt1081
Harrison1060
Clayton1043
Taylor980
Iowa971
Winneshiek951
Page940
Monona910
Kossuth890
Mills890
Palo Alto840
Sac840
Calhoun832
Jefferson830
Osceola830
Fayette820
Grundy791
Winnebago790
Mitchell780
Union771
Monroe727
Cass711
Worth660
Lucas634
Montgomery594
Davis551
Chickasaw540
Howard490
Appanoose483
Fremont420
Greene410
Keokuk341
Van Buren341
Adair290
Ida290
Audubon281
Decatur230
Ringgold211
Wayne191
Adams160
Unassigned70
Rochester
Broken Clouds
71° wxIcon
Hi: 85° Lo: 67°
Feels Like: 71°
Mason City
Broken Clouds
70° wxIcon
Hi: 90° Lo: 68°
Feels Like: 70°
Albert Lea
Clear
70° wxIcon
Hi: 88° Lo: 66°
Feels Like: 70°
Austin
Clear
72° wxIcon
Hi: 87° Lo: 67°
Feels Like: 72°
Charles City
Scattered Clouds
72° wxIcon
Hi: 87° Lo: 68°
Feels Like: 72°
Scattered Storms, Warm & Humid
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Weather

Image

Rochester Area Restore celebrates 6 years

Image

Saturday Weather

Image

Grief mask making workshop

Image

Mace's Weather 8/8

Image

Tractor pullers excited to rev up their engines in 2020

Image

Need school supplies? Iowa tax-free weekend on clothes

Image

War hero remembered with motorcycle ride

Image

Families react to RPS's "Return to Learn" plan

Image

Sara's 10pm Forecast- Friday

Community Events