Claire’s is declaring bankruptcy.
The girls’ accessories chain said Monday it’s filing for Chapter 11 protection to lower its debt by nearly two-billion dollars. Claire’s says an agreement with creditors will cut its debt and provide 575-million dollars in new capital.
The retailer says it’s struggling, like many of its peers, to adjust to slowing traffic in the malls where Claire’s stores are.
Claire’s expects to complete reorganization and come out of bankruptcy in September. Claire’s had more than one-point-three billion dollars in sales last year.