Claire's Second Bankruptcy Signals Troubling Times in Retail

Fashion jewelry retailer Claire's, renowned for its trendy accessories, filed for bankruptcy protection in the United States on Wednesday. This marks the company's second bankruptcy filing following an earlier one in 2018. A court document reveals dwindling consumer spending as a key reason behind this financial measure.

The retailer, with an estimated asset and liability range of $1 billion to $10 billion, filed with the U.S. bankruptcy court in Delaware. Claire's, supported by Elliott Management and Monarch Alternative Capital, operates over 2,750 stores across North America and Europe. Despite its widespread presence, the company has struggled to maintain profitability.

Founded in 1961 in Chicago, Claire's specializes in necklaces, bracelets, and accessories like headphones and soft toys. The company has 25,001 to 50,000 creditors. In March 2018, Claire's filed for Chapter 11 bankruptcy, and after unsuccessful IPO attempts in 2013 and late 2021, it formally withdrew its IPO plans in June 2023, as per a filing with the U.S. Securities and Exchange Commission.