Claire’s became the latest retail chain to file Chapter 11 bankruptcy protection this week, following closely behind the Toys “R” Us closure announcement last week.

Claire’s is planning to close 92 of their 7,500 locations but has a plan to use their bankruptcy filing as a means to turn the sinking ship around. In fact, they project to not only get out of roughly $2 billion in debt, but to come out $250 million ahead by September.

 

What does this mean for the future of Claire’s?

Teens and tweens are Claire’s target demo, and these days, they’re spending more money on food and technology than accessories. Combine this with reduced mall traffic, and you see the overall problem impacting Claire’s.

Ear piercing business is keeping Claire’s afloat while they work to adjust their business model.

 

Will Claire’s close completely?

For now, Claire’s is closing 92 underperforming stores (of 7500). Business Insider published the full list of locations here.

 

 

Can we expect big discounts at Claire’s as a result of the bankruptcy?

The 92 closing locations will certainly see in-store liquidation sales as they approach close, but we don’t expect additional sales at nationwide stores or online. We are watching discounted gift card sites like Gift Card Granny and Raise for a potential increase in Claire’s gift card inventory.

 

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