Claire’s is headed back to bankruptcy court.

On Wednesday, Claire’s Holdings LLC and certain of its U.S. and Gibraltar-based subsidiaries (collectively Claire’s U.S.), the operator of Claire’s and Icing stores across the United States, announced that it has commenced voluntary Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware.

The accessories firm — which sells an assortment of jewelry, socks, slippers, beauty, hair accessories and home — said the move is to “to maximize the value of its business.”

What’s more, the company’s Canadian affiliate operating stores across Canada (Claire’s Canada, and together with Claire’s U.S.) also intends to commence proceedings in Canada under the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice.

The company said that these proceedings will “enable Claire’s to immediately commence the monetization process for its assets to maximize value for the business, while continuing an active and comprehensive review of strategic alternatives, including discussions with potential strategic partners that began prior to the filings.”

Chris Cramer, chief executive officer of Claire’s, said in a statement that this decision was “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,” Cramer said. “We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”

Claire’s noted that its retail stores in North America will remain open and continue to serve customers while the company “continues to explore all strategic alternatives.” Through the filing of customary “first day” motions with the U.S. Court and the Canadian Court, Claire’s added that it “intends to uphold its commitments to customers, employees, and partners, including continued payment of employee wages and benefits,” the company said.

“I’d like to express my gratitude for our employees, who have continued to work diligently in a constantly evolving consumer landscape to deliver amazing products and experiences for our customers,” Cramer added. “We remain committed to serving our customers and partnering with our vendors and landlords in other regions during this time.”

This isn’t Claire’s first time filing for bankruptcy. The company is owned by Elliott Management Corp. and Monarch Alternative Capital, who were part of the creditor group that took control of the retailer after it filed for Chapter 11 bankruptcy court protection in March 2018. The bankruptcy helped Claire’s eliminate $1.9 billion of debt. The retailer exited bankruptcy proceedings seven months later. The tween retailer said in October 2018 that it gained $575 million in new capital in its reorganization.

The retailer was once owned by the Schaefer family. It became a publicly-traded firm in 2005 and was taken private in a $3.1 billion leveraged buyout by Apollo Global Management in 2007.

In 2021 Claire’s said it was planning an initial public offering again, but that plan was abandoned in 2023. In recent years, the girls’ accessories chain has expanded its consumer reach through concessions, or shop-in-shops, in retailers that include Walmart and Macy’s.

But Claire’s has been struggling for years. It faces challenges from other retailers that also cater to its customer base. Those include e-tailers such as Shein and Temu, who both offer a wider range of better quality merchandise at the same low price points.