LIHUE — Claire’s filed for Chapter 11 bankruptcy protection on Monday in an effort to recover from about $2 billion in debt by September.
And while rumors swirl about the unconfirmed closure of 92 stores, the company says Claire’s “expects to operate its business in the ordinary course during its restructuring process.”
“The transaction substantially reduces the debt on our balance sheet and will enhance our efforts to provide the best possible experience for our customers,” said Ron Marshall, Claire’s chief executive officer.
Claire’s has one location at the Kukui Grove Shopping Center, which has been hailed a successful store on many occasions.
Kukui Grove representatives did not return inquiries about the business by deadline on Monday.
The chain, which retails jewelry and accessories marketed toward teens, has more than 7,500 locations in 45 countries and has pierced more than 100 million ears since it began the service in 1978.
In the U.S. alone, Claire’s stores pierced 3,500,000 ears in fiscal year 2017, and expects to add more stores to its inventory in 2018.
“Claire’s is growing, not shrinking its business,” representatives said in a press release. “The company expects its concessions business to grow by more than 4,000 stores in 2018.”
The restructuring isn’t operational, according to representatives, it’s a process to effectuate a balance sheet and Claire’s representatives said the company expects to complete the Chapter 11 process in September 2018, emerging with more than $150 million of liquidity and reducing overall debt by $1.9 billion.
“We will complete this process as a healthier, more profitable company which will position us to be an even stronger business partner for our suppliers, concessions partners, and franchisees,” Marshall said.
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This story was corrected to state the debt was $2 billion.
The author may want to correct this story. Claire’s is wiping out nearly $2 billion in debt, not $2 million.