Jewellery retailer Claire's files for bankruptcy in US

Fashion jewellery retailer Claire's has filed for bankruptcy protection in the United States, its second bankruptcy filing after 2018, a court document showed, highlighting a slowdown in consumer spending, leading to lower sales.

The US-based firm listed its estimated assets and liabilities each between $1 billion and $10 billion in a filing with the US bankruptcy court in Delaware.

The retailer, backed by Elliott Management and Monarch Alternative Capital, operates more than 2,750 stores across 17 countries in North America and Europe, according to its website.

"This decision is difficult, but a necessary one," Chris Cramer, the CEO of Claire's said in a statement.

"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.

"We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives," he added.

Founded in the 1961 in Chicago, Claire's sells necklaces, bracelets and accessories including headphones and soft toys.

The company said it has 25,001 - 50,000 creditors, a court filing showed.

The jewellery retailer filed for Chapter 11 bankruptcy in March 2018, and filed to go public for the second time in late 2021 after its failed attempt to list in 2013.

Claire's formally withdrew its IPO plans for the second time in June 2023, according to a filing with the US Securities and Exchange Commission.

In a statement, the company said it initiated voluntary Chapter 11 proceedings to maximise its business value and will continue to serve customers both in-store and online during the process.

Mr Cramer said the company remains committed "to serving our customers and partnering with our vendors and landlords in other regions during this time".

The company said: "Through the filing of customary 'first day' motions with the US Court and the Canadian Court, Claire's intends to uphold its commitments to customers, employees, and partners, including continued payment of employee wages and benefits."

There are 29 Claire's stores in the Republic of Ireland.