Claire’s could be on the verge of bankruptcy with $2billion of debt, it has been claimed.
The shop which has helped millions of girls and young women feel unique across the world has been hit by a slump in sales and its owners Apollo Global Management LLC are considering relinquishing control.
The proposed deal would allow thousands of stores to remain open for business so it can continue to pay its bills, according to The Hollywood Reporter.
Competition from the online retailers has hit Claire’s hard and in recent years it has attempted to sell its products in other shops, including supermarkets and drugstores.
In January the company announced it was restructuring capital in the business, which is based in America.
Ron Marshall, CEO, said earlier this year: ‘The steps we are taking now with Lazard will help to ensure Claire’s long-term success for years to come.
‘We believe this is the right time to undertake this initiative and we want to assure our vendors, employees and stakeholders that we believe we have ample liquidity to honor our commitments through the completion of this process.’
‘The way consumers shop continues to evolve and we must evolve as well. As part of our 2018 growth plans, we will rollout to 4,000 stores with a large national retail chain and also plan to aggressively grow our online capabilities.’
Claire’s has 4,220 locations in 45 countries and is also world’s biggest piercer of ears, with three million ears being pierced at the stores every year. The company started piercing ears in 1978 clocking up over 100 million procedures. The chain also sells millions of Halloween costumes and school disco dresses.
Metro.co.uk has approached Claire’s for a comment.