The retail landscape in the United States is once again shaken by another piece of news that marks the end of an era. In an economic context that keeps putting pressure on both large and small brands, a chain very well known among young people has taken a difficult but inevitable step. The signs had been accumulating, but now the announcement is official and final.
Claire's company, popular among teenagers for its jewelry and accessories, has filed for bankruptcy for the second time. This move includes the immediate closure of several stores and the possibility that more will be added in the coming months. The financial situation, worsened by the macroeconomic environment, has pushed the company to look for a buyer or, if it can't find one, to liquidate all its assets.
An industry in constant decline
Since the pandemic, the teen fashion and accessories sector hasn't managed to fully recover. Brands like Justice or Forever 21 had already disappeared from the scene after filing for bankruptcy. Now Claire's joins this list, affected by a mix of economic factors and changes in consumer behavior.
The company has filed its bankruptcy petition with a court in Delaware, with debts exceeding $690 million. It states that rising costs, tariffs, inflation, and declining in-store traffic have made the business unsustainable. Its goal is to try to sell the brand or, if it can't find a buyer, to close more than 1,000 stores in the United States and other territories.
Before reaching this situation, Claire's had already determined that more than 700 of its stores weren't viable, including many located in Walmart supermarkets. The decision also includes the closure of its headquarters and warehouses in Hoffman Estates, IL, reveals The Street.
An uncertain future for Claire's
In its official statement, Claire's CEO, Chris Cramer, described the decision as "difficult, but necessary." The company has requested permission to immediately close 18 stores in 13 states, while the evaluation process continues to shut down up to 1,326 more if it can't find a viable solution. Liquidation sales began last August 8 and will continue until the end of October 2025.
Currently, Claire's has about 2,300 stores across North America, Europe, Africa, and the Middle East. In addition to its own stores, it keeps 210 sales points inside Walmart and thousands of concessions in other retailers. However, these efforts haven't been enough to reverse the decline in revenue and profitability.
The company is still negotiating with potential investors to avoid a total shutdown, but time is not on its side. The change in consumer habits, with a strong preference for online shopping and competition with lower prices, has left Claire's in a very delicate situation. Its future now depends on finding a buyer before the judicial process ends.