Budget jewellery retailer Claire's Accessories is reportedly on the verge of filing for bankruptcy in the USA.
But the accessories shop, which is popular with teenagers, is hoping to avoid the drastic action by securing a deal to help ease a $2billion (£1.4billion) debt bill, according to Bloomberg.
Our sister paper The Mirror reports that the eye watering bill is due next year and it faces a $60million (£43million) interest payment tomorrow (March 13).
It is not known how this will affect branches of Claire's Accessories in the UK, of which there is one in Chester city centre and one on Broughton Retail Park.
But when a similar crisis engulfed the US branches of Toys R US 12 months ago, a similar fate followed for their UK branches.
Last week Toys R Us and Maplin collapsed – putting 5,500 jobs in the UK at risk, and up to 3,200 people could be set to lose their jobs at the toy giant in the UK alone.
And earlier this month, pizza chain Prezzo also announced it would be closing 100 restaurants, putting hundreds of jobs at risk.
According to Bloomberg, it means the control of the company would pass from private equity firm Apollo Global Management to lenders including Elliott Capital Management and Monarch Alternative Capital.
Apollo bought Claire's back in 2007 and added around 350 stores between 2010 and 2013 and earlier this year it hired investment bank Lazard to help deal with its debt bill.
Claire's operates in 47 countries around the world, through company operated, concession and franchise stores.
High street shops have been battling against a rise in online competition and difficult trading circumstances.
MirrorOnline has contacted Apollo Global Management for details.