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But even a business model that “remains a compelling proposition over the long term” wasn’t enough to immunize the company from a decline in mall traffic, which fell around 8 per cent year-over-year, Huckins said in a court affidavit. The company also had too much debt, costing it US$183 million a year alone in interest payments, he said.

A Claire’s spokesperson told the Canadian Press that the fashion and jewellery retailer’s European and Canadian businesses are not involved in the U.S. Chapter 11 cases, and will continue operating without interruption.

Latest Bankruptcy

Claire’s is the latest in a string of recent U.S. retail bankruptcies including children’s clothing chain Gymboree Corp., athletic gear seller the Sports Authority Inc. and toy seller Toys ”R” Us Inc.

Chief Executive Officer Ron Marshall has been trying to revive Claire’s North American operations, which have been under pressure as shoppers shun the malls where the company has many of its 7,500 total locations. The task was hindered by payments on its debt load and efforts to tame its liabilities, including a debt exchange in 2016 and a refinanced credit line last year, didn’t do enough to bolster cash.

Apollo, which took the company private in 2007, exchanged around US$183.6 million of debt in the company as part of the 2016 transaction. As of the filing, Apollo owns 98 per cent of the company’s equity, and around 28 per cent of three types of the company’s debt, totalling around US$48 million, according to court filings.