The future of Claire’s on European high streets is in doubt as its US parent company has again filed for protection from creditors. After an earlier restructuring in 2018, financial problems persist.
Heavy debt burden
American jewelry and accessories chain Claire’s has filed for bankruptcy in Delaware under the so-called Chapter 11 procedure. In doing so, the group is trying to protect itself from creditors, as it did last time six years ago, Reuters reports. Despite a hefty debt restructuring of 1.9 billion dollars (about 1.75 billion euros) in the aftermath of the previous bankruptcy, current market conditions are again proving problematic for the company, which is weighed down by a heavy debt load and must repay a 500 million dollar loan by December 2026.
