Mubasher: Calire’s Stores Inc. is preparing to file for bankruptcy in an attempt to slash its debt overhangs, in line with working on shifting away from malls, according to Bloomberg.

The US accessories and jewellery retailer has been expanding into new arenas, including Giant Eagle supermarkets and CVS drugstores, where the company is seeking reposition and generation of “meaningful growth”.

Girls' accessories retailer aims to lure customers to local drugstore or supermarket and to reduce its deep reliance on malls, where foot traffic slowed, the news agency noted.

Claire’s biggest concern in the meantime is $2 billion in debt, hence, the company is preparing a bankruptcy to ease that burden.

Given that the company had pierced more than 100 million ears since 1978.

The fashion accessories chain is seeking Chapter 11 protection to keep its stores open for now, while executives are simultaneously looking for a longer-term plan.

It is worth note that Claire’s has been struggling to compete against online shopping, in line with the US malls being unpopular in general recently.

Moreover, a mother in Rhode Island had discovered asbestos in her daughter's Claire's makeup last December, which had also impacted the company’s image.