Teen retailer Claire’s Stores needs a big sales lift from back-to-school or the business will likely go bankrupt, the New York Post reported yesterday. For the accessories retailer, with nearly 3,000 stores and loaded with so much debt that sucks every penny of profit off its books, a lot of fashionable jewelry and accessories will have to be sold. Back-to-school is the chain’s second-busiest time of the year next to the holiday season, said Claire’s former Vice Chair Marla Schaefer, whose family founded the business and sold it to Apollo Global Management in 2007. Apollo then loaded it with debt. Now Claire’s is discounting to move product. Claire’s owes lenders $2.4 billion. Same-store sales in the 10 weeks ended July 10 are down 5.9 percent from last year. Creditors are discussing how to carve up the company in a bankruptcy.
