Claire's Is Reportedly Filing For Bankruptcy & Here's What That Means Your Accessory Collection
All those years of $2 accessories and sporadic penny sales at Claire's weren't costing you, but apparently it was costing the tween brand. According to Bloomberg, Claire's Stores Inc. is preparing to file for bankruptcy. The publication reports that creditors are taking over the company's $2 billion debt. The store might just be going down faster than that friendship bracelet that you had and lost in fourth grade.
According to the publication, Claire's has declined to comment on the alleged bankruptcy filing. Bustle also reached out to the brand for comment.
You might know Claire's as the place you spent hours in as a kid, where you found the best headbands, or got your ears pierced for the first time. But the switch to online shopping did not work out so well for the brand. As Bloomberg reports, Claire's is in debt $2 billion, which led to a Chapter 11 bankruptcy filing. In non-business speak, that means that the brand is hoping to take on creditors until they can make a plan to pay back the money.
A Chapter 11 bankruptcy is not uncommon for brands. According to The Fashion Law, Payless, Charming Charlie, Nasty Gal, and American Apparel have all filed in the past two years. It doesn't necessarily mean that a company is leaving for good. Claire's has yet to announce any additional store closings or comment on the matter at all, according to Bloomberg.
The news of Claire's allegedly filing bankruptcy doesn't come as a complete surprise. It's no shocker that the fast fashion friendship bracelets and headbands aren't as popular as they once were. Despite Claire's trying to team up with in-store and online brands like CVS and Giant Eagle, they just couldn't make the switch.
According to Bloomberg, Claire's "added about 350 stores between 2010 and 2013, with more than 2,700 globally by the time it filed plans that year to go public." That's a whole lot of affordable accessories. Unfortunately, they haven't been selling enough to keep them afloat.
“It’s mass destruction at American malls, and Claire’s is right in the middle of it,” Howard Davidowitz, chairman of retail consulting and investment banking firm Davidowitz & Associates told Washington Post in July 2016. “Claire’s, which at one time was the most profitable chain in the business, has become a complete train wreck.”
It doesn't take a professional business analyst to see that the brand has had a hard time keeping up with the competition. Just one look at the online website and you'll see everything from slap bracelets to Beanie Babies — both of which aren't exactly millennial favorites anymore, which is part of the problem.
Fans have taken to Twitter to talk about their favorite Claire's moments and send some good vibes to the brand. Yet none of the people tweeting actually mention going to buy anything from the store. While people love the brand for its' nostalgia, they can no longer relate to the accessories that it sells.
Just about everyone has a soft spot for the brand.
If this doesn't prove what the problem is, then I don't know what does.
Because good memories don't pay the bills, my friend.
The economy is good, but in-store shopping is not doing so well.
Ah, the good ol' days. You know, when you could walk into a store with a ten dollar bill and walk out with a bag full of finds.
While Claire's hasn't announced that it will be closing its doors, it's still a time to reflect on all the incredible times you've had there. Oh, and maybe buy something to help them out.