Claire's Bankruptcy: Fashion Retailer Struggles Amid Debt and Competition

Claire's, a well-known fashion jewelry retailer, has filed for bankruptcy protection in the United States for the second time, following its previous filing in 2018. The company plans to close several hundred stores while seeking a buyer for about 800 remaining locations.

According to legal documents submitted to the U.S. bankruptcy court in Delaware, Claire's is grappling with $690 million in debt. The retailer's financial troubles have been exacerbated by increased competition, high rental costs, and tariffs on imports from China, Thailand, and Vietnam. Currently, Claire's operates over 2,300 retail locations globally, including 210 embedded in Walmart stores and 120 under the Icing brand.

Founded in 1961, Claire's has long been a staple for American girls, known notably for ear piercings, claiming over 100 million ears pierced since 1978. However, the rise of online jewelry sellers and specialty ear-piercing services has intensified competition. The company is now scrambling for a buyer to secure its future, as it contends with supply chain challenges under tariffs increasing costs by $30 million since 2025.

(With inputs from agencies.)