Kiko USA is to close the majority of its stores having filed for Chapter 11 bankruptcy, according to a report published by Reuters.

The US subsidiary of Italian Kiko SpA has experienced ‘extremely high operating costs and continually depressed profits in recent years’, according to CEO Frank Furlan, quoted in papers filed at Delaware’s Bankruptcy Court.

The petition estimates the company’s assets to be valued at between US$1 million and US$10 million.