Over the past year, retail stores are struggling to make ends meet when their competitors are online companies, such as Amazon. Consumers are drifting to the easy way of buying things — online and see it in two days on your front step.
The convenience factor is really what's killing the brick and mortar stores. Other retailers such as Toys 'R' Us, Walgreens, and Sears are either filing for bankruptcy or closing a considerable amount of stores.
According to "USA Today," the popular mall jewelry chain, Claire's, is filing for bankruptcy. The company has reportedly fallen short with heavy loads of debt — nearly $2 billion.
"Bloomberg" reported that Claire's would file bankruptcy "in the coming weeks."
The go-to jewelry shop for preteens and young women have 3,291 stores worldwide, including 653 franchised locations. Claire's is known for its fashion accessories and jewelry which is primarily aimed towards girls and young women. The store as been around since 1961.
"Claire’s business has been improving, and it’s generating more cash-flow, but its debt level needs to be reduced," said Philip Emma, an analyst at restructuring industry information firm Debtwire.
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