- Claire's filed for Chapter 11 bankruptcy protection on Monday.
- The teen retailer is closing 92 stores across the US and Puerto Rico.
- We visited one of Claire's New York City stores on the day it announced it had filed for bankruptcy to see what it's like to shop there right now.
Claire's, the teen jewelry and accessories retailer known for its iconic ear-piercing service, filed for Chapter 11 bankruptcy protection on Monday. The company has been crippled with $2 billion of debt and agreed to a restructuring plan to reduce its debt by $1.9 billion.
In the bankruptcy filing, Claire's announced it would be closing 92 stores across the US in March and April.
Claire's has been hit hard by declining traffic to malls since most of its 7,500 stores are located in shopping malls. The majority of its store closings will impact mall-based stores.
"A Claire's store is located in approximately 99% of major shopping malls throughout the United States," Claire's said in a bankruptcy filing, citing data showing that traffic to malls had declined 8% over the last year.
"This decline may be attributable to several factors, including competition from big-box retailers, large tenant closures (leaving malls without an 'anchor' tenant to drive foot traffic), and the increased popularity of online shopping," the company said.
Claire's did not immediately respond to Business Insider's request for comment.
We visited one of its stores to find out exactly what it's like to shop there now:
SEE ALSO: Claire's is reportedly planning to file for bankruptcy as dying American malls claim another victim
The store that we visited was located on Broadway in New York, between the busy shopping areas of Herald Square and Times Square. While this particular store is not plagued by the problems that come with being in a mall, this area is somewhat of a no-man's land for shopping.
This store is not one of the 92 slated to close. When we arrived, there was even a sign that said, "We're hiring."
We could not find any job postings for this location online.
The company has not yet released its fourth-quarter earnings or confirmed whether it closed stores in 2017. In 2016, it closed 166 stores.
Claire's is perhaps best known for its ear-piercing service, which is one of the biggest things that attracts customers to its stores. As soon as we walked into the store, an eager shop assistant asked if we were here to have our ears pierced.
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