Claire’s Files for Bankruptcy Again: What It Means for the Iconic Teen Retailer
Claire’s, the iconic mall accessory store best known for affordable jewelry and ear piercings, has filed for Chapter 11 bankruptcy protection for the second time in seven years, this time in August 2025 (source: CNBC, source: Reuters).
Once a staple for teens and tweens, Claire’s operated more than 2,300 locations worldwide at its peak, including Claire’s stores, Icing boutiques, and mall kiosks. But now, hundreds of stores face closure, and without a buyer, liquidation is a real possibility.
Why Claire’s Filed for Bankruptcy in 2025
Several major factors pushed Claire’s into financial trouble:
Heavy debt load — around $690 million, combined with high rent costs, drained cash flow.
Declining mall traffic — fewer shoppers are visiting malls, the lifeblood of Claire’s business.
E-commerce competition — fast-fashion and online retailers like SHEIN and Temu have captured Claire’s core customer base.
Rising import tariffs — over half of Claire’s products are imported from Asia, and 2025 tariffs reportedly cost the company tens of millions of dollars.
These pressures created the “perfect storm” that even years of restructuring couldn’t fix.
The Chapter 11 Plan — and Potential Liquidation
Claire’s filed its U.S. case in the Delaware Bankruptcy Court while also seeking protection in Canada under the CCAA (source: PR Newswire).
The company’s plan includes:
Closing roughly 700 U.S. stores, including Icing locations.
Running going-out-of-business sales at select locations.
Attempting to find a buyer to take over all or part of the business.
If no buyer emerges, Claire’s could fully liquidate its North American operations by late 2025 (source: Forbes).
Claire’s Bankruptcy Impact in the UK & Ireland
Claire’s Accessories UK Ltd has entered administration, putting more than 2,150 jobs at risk across 306 stores (source: The Guardian).
Key points for UK and Ireland operations:
Stores remain open for now, but online sales are suspended.
Refunds may be delayed or unavailable.
Administrators are exploring whether a restructuring or sale can save jobs.
This Isn’t Claire’s First Bankruptcy
Claire’s last filed for Chapter 11 in 2018, eliminating $1.9 billion in debt and regaining stability. At the time, it seemed poised for a comeback, even considering an IPO in 2023 — but withdrew the plan before it launched.
The same challenges — debt, declining mall traffic, and changing consumer preferences — ultimately led to this second bankruptcy.
What’s Next for Claire’s?
Buyer emerges — This could save some or all stores.
Partial liquidation — Some locations close, others survive.
Full liquidation — All stores shut down by late 2025.
Brand sale — Claire’s trademarks and IP could live on through another retailer.
How This Reflects a Bigger Retail Trend
Claire’s downfall mirrors the struggles of other mall-based retailers in the post-pandemic era. Brands that thrived on in-person shopping are struggling to compete with online marketplaces and evolving consumer habits.
For long-time fans, the idea of malls without Claire’s marks the end of an era. For the retail industry, it’s another sign that the old model needs urgent reinvention.