Claire’s Is Reportedly Filing for Bankruptcy and Our Teenage Hearts Are Broken
It’s a sad, sad day for girls of the ‘90s. Claire’s, your one-stop shop for all things accessory, from Khloé Kardashian-style hoops to Unicorn PWR makeup book sets ($20) and JoJo Siwa reversible sequin backpacks ($37), is reportedly prepping to file for bankruptcy.
According to Bloomberg, the popular retailer from our youth is currently $2 billion in debt, and with a reported $60 million interest payment looming on March 13, the company has plans to file for chapter 11.
That doesn’t necessarily mean stores will close up shop just yet, however: As the outlet noted, chapter 11 bankruptcy filings are common for businesses, allowing them to stay in operation while they come up with a game plan to lower their debt.
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From the sounds of things, Claire’s may already have one in place, with a deal in motion to give control of the company (currently under Apollo Global Management) over to lenders Elliot Capital Management and Monarch Alternative Capital, thereby easing some of its financial burdens (though no reps would confirm the news to Bloomberg).
If history is any indicator, however, it may still just be a matter of time before malls lose yet another staple in Claire’s: American Apparel, which underwent a similar situation last year, wound up closing doors to move online.
Claire’s has issued no comment on the matter.
Fingers crossed this isn’t the beginning of the end!
What’s the best thing you ever bought at Claire’s? Share with us over @BritandCo.
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(Photos via David McNew/Getty)