Photo courtesy of Dina El Nabli
If your budding fashionista is all about accessorizing, odds are you’ve made more than a few trips to Claire’s. And that means you’ll either be sad or thrilled to know that Claire’s Stores Inc. is prepping to file for bankruptcy. The Chapter 11 filing will allow the chain to continue operating until it settles on a turnaround effort, though some worry this could mean the potential end for this tween haven.
The company is closing on a deal that’ll switch its ownership in an effort to ease a debt of $2 billion (that’s more than 10 times what Claire’s earns in a year). Claire’s has been struggling for a while, largely due to online competitors. New attempts to up revenue include agreements to sell products in CVS pharmacies and Giant Eagle supermarkets.
Another struggle? Lab tests commissioned by the US Public Interest Research Group (PIRG) on 15 makeup products containing talc (four of which were from Claire's) found that three of the Claire's products had high levels of asbestos. Claire's denied the results, saying the company's own extensive tests found their products to be asbestos-free (that's after the store pulled items from shelves last December after a different independent lab found asbestos contamination, which the company also denied).
We’re crossing our fingers for Claire’s. After all, where else can we bring our favorite little shoppers to get their ears pierced for free?