Claire's, a well-known retail chain, filed for bankruptcy protection for the second time in seven years, struggling with new tariff costs and nearly $500 million in debt due next year. The company's Canadian division will pursue similar proceedings, while North American stores will stay open. Declining sales have been attributed to inflation, changing consumer spending habits, and increased competition, especially as shoppers shy away from discretionary purchases. Despite efforts to expand and adapt to market trends, Claire's continues to face challenges in an evolving retail landscape dominated by online shopping.
"Increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire's and its stakeholders," CEO Chris Cramer said in a statement.
Claire's has blamed its declining sales on inflation and shoppers' growing reluctance to spend on whims like faux-gold bangles, cat-shaped lip gloss, Hello Kitty socks and Barbie purses.
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