Claire’s, your mall’s teen-ear-piercing destination, files for bankruptcy with assets and liabilities between $1 billion and $10 billion

Claire’s Holdings LLC and certain of its U.S. and Gibraltar-based subsidiaries — collectively Claire’s U.S., the operator of Claire’s and Icing stores across the United States, made the filing in the U.S

Bankruptcy Court in Delaware on Wednesday

Claire’s Chapter 11 filing s the bankruptcies of other teen retailers including Forever 21, which filed in March for bankruptcy tection for a second time and eventually closed down its U.S. as traffic in U.S. shopping malls fades and competition from online retailers Amazon, Temu and Shein intensifies

Claire’s, based in Hoffman Estates, Illinois and founded in 1974, said that its stores in North America will remain open and will continue to serve customers, while it explores all strategic alternatives

In a court filing, Claire’s said its assets and liabilities range between $1 billion and $10 billion. “This decision is difficult, but a necessary one,” Chris Cramer, CEO of Claire’s, said in a press release issued Wednesday. “Increased competition, consumer spending trends and the 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.” many retailers, Claire’s was also struggling with higher costs tied to President Donald Trump’s tariff plans, analysts said

Cramer said that the company remains in “active discussions” with potential strategic and financial partners

He noted that the company remains committed to serving its customers and partnering with its suppliers and landlords in other regions

Claire’s also intends to continue paying employees’ wages and benefits, and it will seek apval to use cash collateral to support its operations

Neil Saunders, managing director of GlobalData, a re firm, noted in a note published Wednesday Claire’s bankruptcy filing comes as “no real surprise.” “The chain has been swamped by a cocktail of blems, both internal and external, that made it impossible to stay afloat,” he wrote

Saunders noted that internally, Claire’s struggled with high debt levels that made its operations unstable and said the cash crunch left it with little choice but to reorganize through bankruptcy

He also noted that tariffs have pushed costs higher, and he believed that Claire’s is not in a position to manage this challenge effectively

Competition has also become sharper and more intense over recent years, with retailers jewelry chain Lovisa offering younger shoppers a more sophisticated asment at low prices

He also cited the growing competition with online players Amazon. “Reinventing will be a tall order in the present environment,” he added

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