Retail·BankruptcyClaire’s, your mall’s teen-ear-piercing destination, files for bankruptcy with assets and liabilities between $1 billion and $10 billionBy Anne D'InnocenzioBy The Associated PressBy Anne D'InnocenzioBy The Associated Press Claire's is bankrupt, again.Daniel Acker/Bloomberg via Getty ImagesMall-based teen accessories retailer Claire’s, known for helping to usher in millions of teens into an important rite of passage — ear piercing — but now struggling with a big debt load and changing consumer tastes, has filed for Chapter 11 bankruptcy tection.
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.
That marked the second time since 2018 and for a similar reason: high debt load and the shift among teens heading online away from physical stores.
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.
Claire’s operates more than 2,750 Claire’s stores in 17 countries throughout North America and Europe and 190 Icing stores in North America.
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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