Accessories retailer Claire's US has initiated voluntary Chapter 11 bankruptcy proceedings in the US Bankruptcy Court for the District of Delaware to maximise the value of its business.

The proceedings are intended to facilitate an immediate monetisation process for its assets while the company continues to assess strategic alternatives.

Claire's retail stores in North America will continue to operate and serve customers in-store and online during this period.

The company intends to maintain its commitments to customers, employees and partners, which includes the continued payment of employee wages and benefits.

This will be achieved through the filing of customary "first day" motions with the US and Canadian courts.

The company’s Canadian affiliate operating stores across Canada also intend to initiate a proceeding in the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (CCAA).

The company stated: “Claire's and ICING [a brand targeted towards young women, while Claire's focuses on younger girls and teenagers] locations outside of North America are not included in the Chapter 11 or CCAA proceedings."

Claire's US is also seeking approval from the court for the consensual use of cash collateral to ensure sufficient liquidity to support ongoing operations. This step is crucial for the company to continue functioning without significant disruption.

Claire's CEO Chris Cramer stated: "This decision is difficult, but a necessary one. Increased competition, consumer spending trends and the ongoing 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.

"We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives."

Legal counsel for Claire's is provided by Kirkland & Ellis, with Houlihan Lokey serving as the investment banker.

Alvarez & Marsal has been appointed as the restructuring advisor. For its proceedings in Canada, Claire's has engaged Osler, Hoskin & Harcourt as its legal counsel.