Claire’s to Close 700 US Stores, May Liquidate Entire North American Footprint Amid Bankruptcy and Sale Talks

Claire's, a mall accessories and ear-piercing chain, is closing 700 US stores and considering liquidation. The company has been in bankruptcy court twice in seven years and is struggling with a decline in mall traffic and increased competition from e-commerce. Despite soliciting bids for all or part of the business, a sale does not seem likely. The company's CEO, Chris Cramer, attributes the struggles to the rise of e-commerce and decline of the mall, as well as tariffs that have increased the cost of goods sold.

Title: Claire's Faces Second Bankruptcy, Plans to Close 700 US Stores

Claire’s, the iconic tween-focused retailer known for its ear-piercing services and affordable accessories, has filed for Chapter 11 bankruptcy for the second time in seven years. The company cited overwhelming debt, shifting consumer habits, and intense market competition as primary reasons for the filing [1].

Claire’s, which operates around 800 stores across the US, is currently saddled with approximately $690 million in debt [2]. The company has confirmed that its stores will remain open during the restructuring process as it evaluates strategic alternatives, including the possible sale of its assets. The company stated in a court filing that its assets and liabilities are both estimated between $1 billion and $10 billion [1].

This is not Claire’s first bankruptcy. In 2018, the company filed for Chapter 11 with similar concerns—an unsustainable debt load and declining mall traffic. That restructuring helped Claire’s shed $1.9 billion in debt and brought in $575 million in new capital [1]. However, Claire’s now faces a retail environment that has further transformed. With the rise of e-commerce, changing Gen Z shopping behavior, and emerging mall fatigue, mall-based chains like Claire’s find themselves increasingly out of sync with consumers [1].

One of Claire’s toughest challenges comes from newer, trend-savvy piercing chains like Studs and Lovisa. These brands have captured the attention of younger shoppers with a cleaner, more upscale in-store experience, while maintaining affordable pricing [1]. In addition to losing ground to these new competitors, e-commerce giants such as Amazon have eroded Claire’s market share, especially in secondary malls where foot traffic has declined significantly over the years [1].

Beyond internal challenges, Claire’s is also facing external headwinds. Tariffs on imported goods threaten to disrupt its supply chain and impact margins. Combined with its high debt obligations, these pressures make restructuring an urgent necessity [1]. The company has not yet disclosed the exact events leading to this latest bankruptcy but is expected to share more details in upcoming court documents [1].

Claire’s hopes that the Chapter 11 filing will allow it to stabilize, attract new investors or buyers, and reposition itself in a rapidly evolving retail world. However, analysts believe the path forward won’t be easy. “Claire’s needs more than just debt relief—it requires a full brand reinvention that connects with younger consumers and adapts to today’s omnichannel retail expectations,” said Neil Saunders, Managing Director at GlobalData [1].

As Claire’s navigates this turbulent period, all eyes are on whether the brand can pivot successfully or risk becoming another mall-era casualty in the age of digital-first retail [1].

References:
1. [1] https://therealpreneur.com/business/claires-files-for-bankruptcy-again-amid-mounting-debt-and-fierce-retail-competition/
2. [2] https://kidscreen.com/2025/08/07/claires-files-for-bankruptcy-a-second-time/