Claire's has more than 7,500 stores in 45 countries. Worldwide subsidiaries of Claire's are not part of the US filings.
The company's main problem was having to shoulder a heavy debt load from Apollo's 2007 leveraged buyout. If all goes well, the company says that this will reduce its debt by roughly $1.9 billion.
Claire's is the latest USA retailer to seek financial help from a bankruptcy court.
While mall traffic has been declining over the years with the rise of online shopping, Claire's says its beloved ear-piercing service is internet-proof since it can not be replicated on the web.
The company accrued the almost $2 billion debt after Apollo Global Management LLC purchased it for $3.1 billion in 2007.
Claire's agreed to a restructuring plan with a group of creditors led by Elliott Managementand Monarch Alternative Capital, according to a statement Monday. "We will complete this process as a healthier, more profitable company". Cash flows from operations, coupled with the RSA and the Company's fully-underwritten $135 million DIP facility from Citi, will provide Claire's with ample liquidity to enter into, operate within, and emerge from chapter 11 seamlessly. Toys R Us announced last week it will liquidate all of its stores in the US. RadioShack filed for a second bankruptcy in March 2017.