The Claire's company announced Monday that it plans to keep stores open while it restructures its debt, however just as Toys R Us, the initial Chapter 11 filing could turn into something more serious as time goes on.
Claire's was profitable in 2017, with net income of $29 million, according to USA Today. Global stores are not part of the restructuring agreement.
During the process, the company will continue to operate approximately 1,600 Claire's and Icing brand stores in the United States. For more information on Claire's locations, click the "Store locator" link on this page.
Others included Toys R Us, which last week surrendered its battle to restructure its operations and chose to exchange the majority of its USA stores, barring a last-minute opportunity to keep the 200 best locations open.
Claire's, which is based in Hoffman Estates, Illinois, traces its history to the founding of a chain of wig stores in the South in 1961. It also points out that this restructuring won't include changes to its operations. Last year, it had more than 4,000 stores around the world.
Claire's is looking to reduce its debt by $1.9 billion.
But even a business model that "remains a compelling proposition over the long term" wasn't enough to immunize the company from a decline in mall traffic, which fell around 8 percent year-over-year, Huckins said in a court affidavit.
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.