Jewelry store Claire’s files for bankruptcy
Claire’s, the longtime tween mall‑based retailer known for trendy jewelry and an ear‑piercing station, has filed for Chapter 11 bankruptcy protection for the second time in seven years.
The company, headquartered in Hoffman Estates, Illinois, operates about 2,750 stores across 17 countries, including around 190 North American stores under its Icing brand. It listed both its assets and liabilities in the $1 billion to $10 billion range in its Delaware filing.
Claire’s stores across the United States will stay open as the company evaluates potential “strategic alternatives,” the company announced.
Executives cited a perfect storm of challenges contributing to the company’s financial strain. One of the most pressing issues is the declining demand from younger shoppers, especially Generation Alpha, who increasingly prefer online fashion experiences tied to social media platforms rather than traditional mall-based retail.
Claire’s is grappling with mounting pressure from fast-fashion and ultra-low-cost online retailers such as Shein, Temu, Amazon, and TikTok Shop. These digital-first competitors are able to quickly respond to trends and offer products at prices traditional retailers struggle to match.
Claire’s is not alone. It joins other once-desired mall brands like Forever 21 and Foot Locker that have recently sought bankruptcy protection or become acquisition targets in a shift away from traditional retail formats.
The company also faces a looming financial hurdle in the form of a roughly $480 million loan, with deferred interest payments due in December 2026.
U.S. tariffs have significantly increased expenses, particularly for products sourced from countries such as China, Cambodia and Indonesia. These elevated costs make it harder for Claire’s to remain competitive on pricing.
“This decision is difficult, but a necessary one,” Chris Cramer, CEO of Claire’s, said in the company’s statement. “Increased competition, consumer spending trends, and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire’s and its stakeholders.”
In March 2018, Clarie’s first Chapter 11 filing allowed the company to shed roughly $1.9 billion in debt and secure about $575 million in financing, emerging in just seven months under creditor ownership by Elliott Management and Monarch Alternative Capital.
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