Claire’s Files for US Bankruptcy for Second Time in Seven Years
Claire’s, the popular tween jewellery and ear-piercing retailer, has filed for bankruptcy in the United States for the second time in seven years, citing mounting debt, declining consumer spending, and growing competition from online shopping platforms.
According to documents filed in a Delaware court, the accessories chain—which operates over 2,700 stores across 17 countries including the UK and France—currently holds debts estimated between $1 billion and $10 billion.
One major concern looming over the company is a $500 million loan due in December 2026, as uncertainty surrounding former U.S. President Donald Trump’s trade tariff policies adds further instability to its financial outlook.
In a statement, Claire’s CEO Chris Cramer said:
> “This decision is difficult, but a necessary one. 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.”
Despite the filing, Claire’s said stores in the U.S. and Canada will continue operating as the company explores strategic alternatives, including partnerships and restructuring.
In the UK, where the company runs at least 280 stores, Claire’s has brought in advisory firm Interpath to assess its future—potentially leading to a sale or insolvency process and likely widespread store closures. UK sales dropped by nearly 1% to £136 million (\$181 million) in the year ending February 1, 2024, with a pre-tax loss of £4 million following a £5 million loss the previous year. Claire’s employs more than 1,600 people in the UK.
Meanwhile, Claire’s French division, which manages 239 outlets, recently entered receivership.
The brand’s struggles reflect broader trends impacting brick-and-mortar retailers. Rising inflation, cautious spending, and the convenience of e-commerce have pushed many mall-based businesses to the brink. Competitors like Superdrug in the UK now offer popular services such as ear piercing, once dominated by Claire’s.
Claire’s isn’t alone:
Forever 21 filed for bankruptcy in March 2025, citing fierce online competition from platforms like Shein.
Macy’s is in the process of shuttering over 150 stores over three years, with more than 60 closures planned in 2025.
Rite Aid and 99 Cents Only also filed for Chapter 11 bankruptcy last year.
Claire’s current parent companies, Elliott Management and Monarch Alternative Capital, took control during its 2018 bankruptcy, when the firm restructured \$1.9 billion in debt amassed after its 2007 acquisition by Apollo Global Management.
Claire’s now joins a growing list of legacy retailers forced to reassess their place in a rapidly evolving global retail landscape.
