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, filed for Chapter 11 bankruptcy protection earlier this month. The retailer is closing nearly 300 stores including seven locations in Kansas and six in Missouri.
- Claire’s: Town Center Plaza, Leawood
- Claire’s: Flinthills Mall, Emporia
- Claire’s: Manhattan Town Center, Manhattan
- Claire’s: Village Square Mall, Dodge City
- Claire’s: Meadowbrook Mall, Pittsburg
- Claire’s: New Market Square, Wichita
- Claire’s: Garden City Shopping Center, Garden City
- Claire’s: Capital Mall, Jefferson
- Claire’s: Ward Parkway Center, Kansas City
- Claire’s: Shoppes At North Village, St Joseph
- Icing: West County Mall, Des Peres
- Icing: Independence Center, Independence
- Icing: Northpark Mall, Joplin
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. 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.
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..
Neil Saunders, managing director of GlobalData, a research firm, noted in a note published earlier this month, 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.