Claire's Stores jewelry chain files for Chapter 11 bankruptcy protection

[Sherman A1]

https://www.usatoday.com/story/money/2018/03/19/claires-stores-jewelry-chapter-11-bankruptcy/437259002/

Mall jewelry chain Claire’s Stores has filed for Chapter 11 bankruptcy protection, hoping to escape huge debts preventing the company from shimmering in a dim environment for retail.

Claire’s is another victim of a string of private equity buyouts orchestrated by outside investors who loaded up on debt about a decade ago, saddling retailers with burdensome payments.

Others included Toys R Us, which last week gave up its fight to restructure its operations and decided to liquidate all of its U.S. stores, barring a last-minute chance to keep the 200 best locations open.

Struggling malls, online competition and nimble physical competitors have also proven problematic.

[WhiskeyGrinder]

1. Well, if other GenXers shoplifted from there as much as some I know...

[TheBlackAdder]

4. Yeah, but most of that is Chinese pot metal, which comes in for pennies per dollar sold.

.

Those fancy $40 silk scarves on the counters at stores like Macy's cost anywhere from $1.25-$1.75. The store makes money when they are sold at 80% off. Almost evey pair of jeans cost less than $10. Some go out on the floor for $20, other name brands will go out on the floor for $140. Sunglasses are one of the biggest rips, most of those $120 sunglasses cost retailers less than $5-$7 a pair.

I did work at one posh designer store, in most high-end malls, and their $40 t-shirts cost $1.20. I was working as an IT employee that provided outsourcing for them. Only a few executive-level employees were able to see the purchase orders.

.

[Canoe52]

6. Thanks for the info, Adder!

[Aristus]

2. They can blame the private-equity buyouts if they want.

But they should consider that the shitty merchandise might have had something to do with it.

[MineralMan]

3. Oh, noes! Now where will teens shoplift earrings that turn their earlobes green?

The Horror!

[dembotoz]

5. so when will we see vacant malls turned into ice deportation centers

limited access
existing kitchen facilities in food courts
plenty of parking for buses
existing bathroom facilities in good locations

Bet there are a lot of commercial real estate holding companies that would jump at the chance to unload some white elephants


like coal....don't think malls are coming back

[FarCenter]

7. It's been coming for a while -- this from June 26, 2017

So far this year, more than 300 retailers have filed for bankruptcy, including mall staples BCBG Max Azria, Rue21, Wet Seal and the Limited. Others, including Macy’s, Sears and Bebe have closed hundreds of stores.

“It’s mass destruction at American malls, and Claire’s is right in the middle of it,” said Howard Davidowitz, chairman of retail consulting and investment banking firm Davidowitz & Associates. “Claire’s, which at one time was the most profitable chain in the business, has become a complete train wreck.”

It’s been a confluence of bad news for the Chicago-based chain, which has long relied on groups of girls coming into its stores with their weekly allowances or birthday money. Fewer Americans are going to malls these days, and those who do increasingly are shopping at fast-fashion chains like H&M, Forever 21 and Zara, all of which have boosted their accessories sections in recent years.

https://www.washingtonpost.com/business/economy/this-beloved-accessories-store-is-a-complete-trainwreck-of-pink-sparkly-poofs/2017/06/26/b7f286e4-575e-11e7-b38e-35fd8e0c288f_story.html