Claire's, known for piercing millions of teens' ears,
files for Chapter 11, 2nd time since 2018
[August 07, 2025] By
ANNE D'INNOCENZIO
NEW YORK (AP) — Mall-based teen accessories retailer Claire's, known for
helping to usher in millions of teens into an important rite of passage
— ear piercing — but now struggling with a big debt load and changing
consumer tastes, has filed for Chapter 11 bankruptcy protection.
Claire’s Holdings LLC and certain of its U.S. and Gibraltar-based
subsidiaries — collectively Claire’s U.S., the operator of Claire’s and
Icing stores across the United States, made the filing in the U.S.
Bankruptcy Court in Delaware on Wednesday. That marked the second time
since 2018 and for a similar reason: high debt load and the shift among
teens heading online away from physical stores.
Claire's Chapter 11 filing follows the bankruptcies of other teen
retailers including Forever 21, which filed in March for bankruptcy
protection for a second time and eventually closed down its U.S.
business as traffic in U.S. shopping malls fades and competition from
online retailers like Amazon, Temu and Shein intensifies.
Claire's, based in Hoffman Estates, Illinois and founded in 1974, said
that its stores in North America will remain open and will continue to
serve customers, while it explores all strategic alternatives. Claire's
operates more than 2,750 Claire’s stores in 17 countries throughout
North America and Europe and 190 Icing stores in North America.
In a court filing, Claire's said its assets and liabilities range
between $1 billion and $10 billion.
“This decision is difficult, but a necessary one,” Chris Cramer, CEO of
Claire’s, said in a press release issued Wednesday. “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.”
Like many retailers, Claire's was also struggling with higher costs tied
to President Donald Trump's tariff plans, analysts said.
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People shop at a Claire's in New York, Saturday, March 17, 2018. (AP
Photo/Seth Wenig, File)
 Cramer said that the company remains
in “active discussions” with potential strategic and financial
partners. He noted that the company remains committed to serving its
customers and partnering with its suppliers and landlords in other
regions. Claire’s also intends to continue paying employees' wages
and benefits, and it will seek approval to use cash collateral to
support its operations.
Neil Saunders, managing director of GlobalData, a research firm,
noted in a note published Wednesday Claire's bankruptcy filing comes
as “no real surprise.”
“The chain has been swamped by a cocktail of problems, both internal
and external, that made it impossible to stay afloat,” he wrote.
Saunders noted that internally, Claire's struggled with high debt
levels that made its operations unstable and said the cash crunch
left it with little choice but to reorganize through bankruptcy.
He also noted that tariffs have pushed costs higher, and he believed
that Claire’s is not in a position to manage this latest challenge
effectively.
Competition has also become sharper and more intense over recent
years, with retailers like jewelry chain Lovisa offering younger
shoppers a more sophisticated assortment at low prices. He also
cited the growing competition with online players like Amazon.
“Reinventing will be a tall order in the present environment,” he
added.
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