Claire’s identifies 700 stores for closure; warns it could wind down U.S. operations
If bankrupt Claire’s doesn’t find a buyer, all of its U.S. stores are likely to go dark.
The tween and teen accessories retailer on Wednesday filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware, with plans to make a similar filing in Canada. Claire’s currently operates approximately 1,350 store locations in the United States and U.S. territories, with the total including Claire’s, Icing and Walmart shop-in-shop locations.
In its court documents, the company said that, prior to the filing, its management team and advisors conducted an analysis of its existing U.S. store footprint to identify stores that aren’t viable under current lease terms or otherwise underperforming.
“Based on this review, the company determined it is advisable to exit approximately 700 store locations, including all of its Icing locations and 210 Walmart SiS [shop-in-shop] locations, and pursue a value-maximizing transaction for the remaining approximately 800 stores,” the document reads.
The company recently solicited bids for all or part of its operations as a going-concern or as a full-chain liquidation. According to the court documents, if an actionable going-concern sale has not materialized for the remaining 800 stores, and unless a going-concern purchaser emerges in the immediate near-term, Claire’s intends to exit all of its physical store locations.
Claire’s has been struggling under a heavy debt load and the rise of e-commerce, with increased competition from increased online budget retailers such as Temu and Shein. At the same time, the ear-piercing market, which Claire’s dominated for years, has become increasingly competitive as newer brick-and-mortar players such as Studs, Rowan and Lovisa moved into the space. Other outlets, such as tattoo parlors, have also grown in popularity as a location for piercing services.
Tariffs
Most recently, higher import costs from U.S. tariffs have added to its problems. Claire’s relies heavily on foreign suppliers: Between November 2024 and April 2025, the company purchased approximately 70% of its inventory from suppliers located outside of the United States, including, among others, 56% from mainland China, 8% from Vietnam, and 3% from Thailand.
“As a result, the company has been significantly impacted by the implementation of sweeping tariffs on imported goods in April 2025, which led to higher projected costs and uncertainty in inventory pricing,” Claire’s said in court documents.
