Accessory retailer Claire's to seek creditor protection in Canada but stores will stay open

Claire's Holdings LLC says it has filed for bankruptcy protection in the U.S. and will soon follow suit in Canada.

The accessories and cosmetics retailer says it will make a filing with the Ontario Superior Court under the Companies' Creditors Arrangement Act.

Claire's stores in North America will remain open as it embarks on the process, which it says will help monetize its assets and allow it to explore strategic alternatives for the business.

Claire's CEO Chris Cramer positioned the decision to file for creditor protection as difficult but necessary.

He says the company made the move because of increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail.

Claire's was founded in 1974 and has more than 2,750 Claire's stores in 17 countries throughout North America and Europe. It is known for selling jewelry, cosmetics, accessories to girls between the ages of three and 18, and for its ear-piercing services geared toward teens.