Claire’s files for bankruptcy; closing 18 stores — here's where
Claire’s Holdings has filed for bankruptcy protection for the second time in seven years.
The mall-based tween and teen accessories retailer, which operates stores under the Claire’s and Icing banners, said it filed for Chapter 11 protection “to maximize the value of its business.” The company also plans to start insolvency proceedings in Canada that would allow it to restructure.
Claire’s said its stores in North America will remain open while it continues to explore strategic alternatives. The chain, which reportedly has been seeking a buyer, intends to sell some or all of its assets, and an initial 18 U.S. stores (13 Claire's stores and 5 Icing stores) are scheduled to close, according to court documents. (List of locations is at end of article.)
The move was not unexpected. Claire’s has been struggling under increased competition from online budget retailers such as Temu and Shein, while newer brick-and-mortar players such as Studs and Lovisa have challenged its signature ear piercing business. Higher import costs from U.S. tariffs have added to its problems.
The company also has a heavy debt load, with a nearly $500 million loan due in December 2026. Claire’s skipped rent payments at some locations in June and July, according to Bloomberg.
In its filing, Claire’s estimated the total value of both its consolidated assets and liabilities as between $1 billion and $10 billion.
"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," said Chris Cramer, CEO of Claire's. "We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives."
In its statement, Claire’s said that it would seek approval for “a consensual use of cash collateral” to ensure it had the funds to continue operating.
Previous Filing
Claire’s first filed for bankruptcy in 2018. It emerged several months later under new owners Elliott Management Corp. and Monarch Alternative Capital, who were part of the creditor group that took control of the retailer after it filed. As part of its financial restructuring, Claire’s eliminated approximately $1.9 billion of debt from its balance sheet and gained access to $575 million in new capital.
According to its website, Claire’s operates more than 2,750 stores in 17 countries throughout North America and Europe and 190 Icing stores in North America. Claire’s products are also in thousands of in-store shops in retailers North America and Europe. It also has more than 300 franchised Claire’s stores, located primarily in the Middle East and South Africa.
STORE CLOSINGS
Claire's store closings include:
- Eastdale Mall, Montgomery, Ala.
- Newpark Mall, Newark, Calif.
- Ford City Mall, Chicago
- Market Street, Lynnfield, Mass.
- Bay City Town Center, Bay City, Mich.
- Northtown Mall, Blaine, Minn.
- Livingston Mall, Livingston, N.J.
- Uniontown Mall, Uniontown, Pa.
- Shops at Highland Village, Highland Village, Texas
- Pinnacle at Turkey Creek, Knoxville, Tenn.
- Junction Commons, Park City, Utah
- Provo Town Center, Provo, Utah
Woodinville Plaza, Woodinville, Wash.
Icing store closings include:
- Galleria at Tyler, Riverside, Calif.
- Woodland Mall, Grand Rapids, Mich.
- Greece Ridge, Rochester, N.Y.
- Mall of Abilene, Abilene, Texas
- University Orem, Orem, Utah