A longtime Nittany Mall store may be closing soon as its company begins voluntary bankruptcy proceedings.
Jewelry and accessories retailer Claire’s is holding a “store closing” sale, offering 50% to 70% discounts on all inventory. The location also has a kiosk with interest forms for equipment and fixtures.
A closing date has not been advertised. A spokesperson for Claire’s did not respond to a question about whether a final day of business for the location has been determined, but instead referred a reporter to a website established for updates about the bankruptcy proceedings and the court docket for the case.
Court filings identified 18 Claire’s and Icing stores for initial closure in September. Another court document lists more than 1,100 stores, including the Nittany Mall store, though it is not clear how many of those the company intends to close.
Claire’s announced on Aug. 6 that it commenced Chapter 11 bankruptcy proceedings to “maximize the value of its business.”
“This decision is difficult, but a necessary one. 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,” Chris Cramer, CEO of Claire’s, said in a statement. “We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”
The company is soliciting bids and could stop liquidation sales if it finds a buyer for the entire business. The bankruptcy proceedings, according to a news release, allow it “to immediately commence the monetization process for its assets to maximize value for the business, while continuing an active and comprehensive review of strategic alternatives.”
It’s the second time Claire’s has filed for bankruptcy in seven years.
