Claire’s Stores files for Chapter 11 bankruptcy

Claire”™s Stores Inc., a national jewelry retail chain with a ubiquitous presence in shopping malls, has announced it is filing for Chapter 11 bankruptcy.

The Hoffman Estates, Illinois-based company, which operates more than 5,300 stores in the U.S. under the Claire”™s and Icing brands, claims to be in 99 percent of the nation”™s malls. Claire”™s Stores Inc. held $2.1 billion in debt at the end of last year and vowed to reduce its debt by $1.9 billion. It reported a net income of $28.656 million for the 12 months ending Feb. 3.

In announcing its bankruptcy filing, the company said that “unlike other retailers that have come before it, Claire”™s has commenced its restructuring process from a position of unique operational strength.” It added that it was enabling the Chapter 11 process to “effectuate a balance sheet ”“ not an operational ”“ restructuring.”

The company said that it had no plans to shutter its retail operations during the bankruptcy process. Regionally, Claire”™s and Icing stores can be found at malls in Yonkers, White Plains, Jefferson Valley, New City, West Nyack, Stamford, Danbury and Trumbull.