Tween jewelry chain Claire’s filed for Chapter 11 bankruptcy in the District of Delaware yesterday in a last-ditch move to restructure the company’s US operations. 

This is the second time the retailer has had to file for bankruptcy in seven years, following its initial declaration in 2018 that resulted in hundreds of store closures and creditors Elliott Management and Monarch Alternative Capital taking ownership of Claire’s assets. 

CEO Chris Cramer attributes the decision to multiple factors affecting the company’s bottom line, including increased competition in the marketplace, skyrocketing import costs due to tariffs and consumers shifting away from brick-and-mortar stores. Claire’s operates about 800 stores across the US, which it says are all in jeopardy of being shuttered if the retailer doesn’t find a buyer. 

According to court documents, Claire’s has US$690 million in debt and has listed assets and liabilities between US$1 billion and US$10 billion. The company is in active discussions with several potential investors and buyers to acquire its assets and form a new business plan.

A majority of Claire’s US storefronts will continue to operate while the company goes through bankruptcy proceedings, but an initial batch of 18 unprofitable stores are set to close in the coming weeks to lower overhead.

Claire’s isn’t faring much better in its other key markets. The retailer hired financial services company Interpath as a restructuring advisor for its UK stores last month. And the jewelry chain has also confirmed it will file for creditor protection in Canada this week through the Ontario Superior Court of Justice. 

Since its founding in 1961, Claire’s has served as a valuable licensing partner for multiple kids brand owners to enter the jewelry space, including Sanrio (Hello Kitty), Mattel (Barbie), Disney (Frozen), Jazwares (Squishmallows) and The Pokémon Company International.