NATICK – A popular retailer with teens has filed for bankruptcy to help lower its $1.9 billion debt.
Retailer Claire’s Store Inc. anticipates its Chapter 11 process to be completed in September 2018.
The mall retailer became a private company in 2007.
“Its plan to survive rests on its reputation for trendy merchandise and a unique service that it says can’t be replicated by shopping online: ear piercing,” reported Bloomberg News. The company began piercing ears in 1978.
The company has pierced more than 100 million ears, said Claire’s Chief Financial Officer Scott Huckins in court papers.
Claire’s has more than 7,500 stores in 45 countries. The company did not indicate it plans to close any locations.
The company has a $183 million a year interest payment in debt.
Clair’s announced it has an agreement with an ad hoc group of first-lien creditors that will provide the company with $575 million in new capital via Elliott Management Corp. and Monarch Alternative Capital LP.