New York
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Claire’s, a mall staple that pulls pre-teens for its discount jewellery and equipment, has filed for its second bankruptcy in lower than a decade.
The retailer, which filed for Chapter 11 bankruptcy safety in a federal court docket in Delaware Wednesday, has been coping with a number of issues in recent times together with competitors from on-line rivals, mounting debt and the uncertainty from tariffs.
“This decision is difficult, but a necessary one,” stated Claire’s CEO Chris Cramer in a assertion. “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.”
The shops in North America will stay open whereas it “continues to explore all strategic alternatives,” together with a potential sale.
Like different retailers, Claire’s is closely depending on importing its low-cost items from China, Cambodia and different Asian international locations, which the Trump administration has hit arduous with a patchwork of tariffs and different aggressive commerce insurance policies.
Claire’s has a $496 million mortgage due in December 2026 and it has stopped paying each curiosity hire funds on unprofitable shops, in keeping with Debtwire.
The bankruptcy is “no surprise,” stated Neil Saunders, managing director of GlobalData, saying that Claire’s has been struggling with a “cocktail of problems, both internal and external, that made it impossible to stay afloat.”
“Claire’s has struggled to simultaneously manage its debts and service day-to-day operations,” Saunders stated. “The prospects of it being able to pay loans as they become due are extremely slim.”
The 64-year-old retailer hasn’t stored up with the competitors, which “has also become sharper and more intense over recent years,” he stated, which is “more attuned to what younger consumers want and has left Claire’s looking somewhat out of step with modern demand.”
Claire’s first filed for bankruptcy in 2018, when it had greater than 4,500 shops globally. It now has about 2,750 places, together with its Icing spinoff, spanning 17 international locations.
It’s the most recent retailer to file for bankruptcy this yr. Forever 21, At Home and Quicksilver-owner Liberated Brands additionally filed for bankruptcy in 2025.