Claire’s Files Second Bankruptcy amid Competition from Online Rivals, Tariffs, and Shift Away from Brick-and-Mortar Retail
In a move aimed at restructuring its operations, Claire’s—a longstanding retailer known for attracting teenagers with affordable jewelry and accessories—has sought Chapter 11 bankruptcy protection. The filing, made in a Delaware federal court on Wednesday, reflects a challenging environment characterized by fierce online competition, mounting debt, and economic uncertainties stemming from trade tariffs.
“This decision was difficult but necessary,” said Chris Cramer, CEO of Claire’s, in a statement. “Competitive pressures, shifting consumer trends, the retail sector’s transition away from brick-and-mortar stores, and our existing debt obligations, combined with broader macroeconomic factors, necessitate this course of action for both Claire’s and its stakeholders.”
The North American outlets will continue operations while exploration into strategic alternatives continues. Potential options include a possible sale.
Like many retailers, Claire’s relies heavily on importing low-cost goods from China, Cambodia, and other Asian nations, which have been impacted by the Trump administration’s tariffs and aggressive trade policies. The company has a $496 million loan maturing in December 2026, and it has halted interest and rent payments on underperforming stores, according to Debtwire.
Neil Saunders, managing director of GlobalData, described the bankruptcy as “no surprise,” attributing Claire’s struggles to a mix of internal and external issues that have made survival difficult.
“Claire’s has struggled with both debt management and day-to-day operations,” Saunders said. “The prospects of it meeting loan obligations as they become due are extremely slim.”
Saunders further noted that Claire’s has fallen behind the competition, which has grown sharper and more intense over recent years, offering products more in line with younger consumers’ preferences, leaving Claire’s seeming outdated.
Founded in 1956, Claire’s filed for bankruptcy once before in 2018, when it operated over 4,500 stores worldwide. Today, it maintains approximately 2,750 locations, including its Icing spinoff, across 17 countries.
Claire’s joins a growing list of retailers filing for bankruptcy in 2025, which includes Forever 21, At Home, and Quicksilver-owner Liberated Brands.