The report also says that Claire's parent company, Apollo Global Management, LLC, is working on a deal that would pass control of the retailer to lenders. By filing for a chapter 11 bankruptcy, Claire's would still be able to operate and stop creditors from collecting until a plan can be put into action. More than $1.4bn (£1.01bn) of its debt is due next year and on 13 March it faces a $60m interest payment.
It is not clear how the buyout will impact Claire's store in the UK. Because of that, it previously struck deals to sell in CVS pharmacies and Giant Eagle supermarkets, but it seems that hasn't been enough.
According to its website, Claire's has locations at malls throughout South Florida including Aventura Mall, Dadeland Mall, Sawgrass Mills, the Coral Ridge Mall, Boynton Beach Mall and the Town Center at Boca Raton.
Apollo bought Claire's back in 2007 and added around 350 stores between 2010 and 2013.
Claire's operates in 47 countries worldwide and has 4,220 locations - with many shops being franchises.
Greg Portell, lead partner of the retail practice at the A.T. Kearney consulting firm, told Bloomberg that Claire's is capable of profitable operations but "they can't service their debt".