Claire’s Skips Rent Payments, Moving Closer to Bankruptcy Filing

Claire’s Stores Inc. is inching closer to filing for Chapter 11 bankruptcy as the teen accessory chain elected to miss June and July rent payments on some stores, according to people familiar with the matter.

The firm may seek protection as soon as this week, but doing so could take longer as the retailer finalizes details of the filing, said the people, who asked not to be identified discussing a private matter.

Claire’s has been exploring restructuring options, including a possible sale, amid weakened cash flow and a heavy debt burden. Earlier this year, it chose to ...