The chain’s bankruptcy filing is the second in seven years. Its troubles include unwieldy debt, shoppers’ changing habits and new tariff costs.
Claire’s — the ear-piercing, glittery tween mall staple — is once again on the brink of survival.
The chain on Wednesday filed for bankruptcy protection for the second time in seven years. It is struggling under the weight of new tariff costs just a year before an unwieldy loan of nearly $500 million is due. The retailer says its Canadian arm will pursue a similar bankruptcy proceeding, but that North American stores would remain open during the process.
Claire’s has blamed its declining sales on inflation and shoppers’ growing reluctance to spend on whims like faux-gold bangles, cat-shaped lip gloss, Hello Kitty socks and Barbie purses. Most of the store’s items come from China, which faces the highest tariffs in President Trump’s renegotiation of world trade.
