Fashion chain dealing with debt, may file for bankruptcy
(WAND) – A popular fashion chain’s future might be in trouble after falling into debt.
Today reports Claire’s Stores Inc. is dealing with $2 billion of debt, according to a Bloomberg report. The company, which has stores in malls across America, could file for Chapter 11 bankruptcy protection and reorganize. Stores are still open for now.
Today says it reached out to Claire's for comment and has not heard back.
One struggle the company is facing revolves around online shopping, as people are turning to the web instead of visiting malls. That change in trends has hurt foot traffic to mall stores.
Claire’s also ran into issues last fall, when a Rhode Island mother found tremolite asbestos, a form of the mineral known to potentially cause cancer, in a makeup kit from a Claire’s store. Today reports an independent lab in North Carolina found other Claire’s makeup kits had the same issue.
In a statement from December of 2017, Claire’s announced it pulled the product in question from shelves and ordered more testing.
Claire’s has stores in Forsyth, Springfield and Mattoon.