Tween accessories retailer Claire's files for bankruptcy again as debt pile looms

Justin Sullivan | Getty Images News | Getty ImagesTween retailer Claire's filed for bankruptcy tection for the second time in seven years on Wednesday in the hopes it can reorganize its and stave off liquidation

The mall-based boutique, long known for its ear piercing services and eclectic mix of jewelry and accessories, is staring down $500 million in debt, rising competition and an evolving retail landscape that's made it harder than ever to grow a fitably. "This decision is difficult, but a necessary one

Increased competition, consumer spending trends and the 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," CEO Chris Cramer said in a news release. "We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives."The company said stores will continue to operate as it looks to monetize its assets and continues a review of "strategic alternatives," which could mean finding a buyer that's willing to keep the running.In a court filing, the company said its assets and liabilities are both between $1 billion and $10 billion and it's explored a sale of its assets

Details around the events that led to its filing weren't disclosed and are expected to be revealed in later court filings

The restructuring handed control of the company over to its creditors, including Elliott Management Corporation and Monarch Alternative Capital

While Claire's is still facing an untenable level of debt, it's also grappling with new challenges

Tariffs are expected to impact its supply chain, and sleeker, savvier competitors have entered the market, such as Studs and Lovisa, the upstart ear piercing chains that have mised a safer, and cooler, apach to piercings. "Competition has also become sharper and more intense over recent years, with retailers Lovisa offering younger shoppers a more sophisticated asment at value prices

This is more attuned to what younger consumers want and has left Claire's looking somewhat out of step with modern demand," GlobalData managing director Neil Saunders said in a note. "Amazon and other online players have also turned the screw, especially as visits to some secondary malls where Claire's is present have waned."