Anne D’Hynenzio, Associated Press
NEW YORK (AP) – Mall-based teen accessories retailer Claire is known for helping millions of teenagers lead to important passing rituals.
Claire’s Holdings LLC and its U.S.-based subsidiary – Claire’s operator Claire, the operator of Claire all over the United States, filed Wednesday in the U.S. Bankruptcy Court in Delaware. This is the second mark since 2018, and for similar reasons, a high debt load and teenagers moving away from physical stores online.
Claire’s Chapter 11 filing filed for second bankruptcy protection in March, and ultimately concluded with US operations as traffic at US shopping malls competed with online retailers such as Amazon, Temu and Shein.
Based in Hoffman Estate, Illinois, Claire, founded in 1974, said its North American stores remain open and will continue to serve customers. Clares operates more than 2,750 Clare stores in 17 countries in North America and Europe, and 190 icing stores in North America.
In a court application, Claire said the range of assets and liabilities ranges from $1 billion to $10 billion.
“This decision is difficult, but it’s a necessary decision,” Claire CEO Chris Kramer said in a press release issued Wednesday. “In combination with current debt and macroeconomic factors, increased competition, trends in consumer spending, and a continuous shift from brick and mortar stores require this course of action for Claire and his stakeholders.”
Like many retailers, Claire also struggled with higher costs associated with President Donald Trump’s tariff plans, analysts said.
Cramer said the company remains in “active discussions” with potential strategic and financial partners. He said the company is still committed to serving its customers and partnering with suppliers and landlords in other regions. Claire also intends to continue paying employee wages and benefits, and seeks approval to use cash collateral to support the business.
Neil Saunders, managing director of research firm GlobalData, said in a memo released Wednesday that Claire’s bankruptcy filing was “not a real surprise.”
“The chain was overwhelmed by the cocktail of both internal and external issues, making it impossible for it to float,” he wrote.
Sanders said internally, Claire suffers from high debt levels that have destabilized the business, and that cash crunch has little option but to restructure through bankruptcy.
He also pointed out that tariffs were increasing costs, and believed Claire was not in a position to effectively manage this latest challenge.
Also, competition has become more sharp and more intense in recent years, with retailers like jewelry chain Robisa offering a more refined assortment for younger shoppers at a lower price. He also cited growing competition with online players like Amazon.
“Reinvention would be a high order in the current environment,” he added.
Original issue: August 6, 2025, 2:07pm EDT
