Fashion jewelry chain Claire’s has filed for Chapter 11 bankruptcy protection in the U.S. for the second time, weighed down by nearly $690 million in debt and an evolving retail landscape that has steadily eroded its core business. The filing, made in the U.S. Bankruptcy Court in Delaware, outlines plans to shutter hundreds of stores and seek a buyer for its remaining 800 outlets.
The company’s latest bankruptcy comes seven years after its first in 2018. Despite a short recovery post-pandemic, recent pressures from high rents, rising import tariffs, and aggressive competition from fast-fashion and specialty players have pushed the Chicago-founded retailer to the brink once again.
Claire’s currently operates more than 2,300 locations across 17 countries, including 210 shop-in-shops inside Walmart and another 120 under its Icing brand. In addition, it manages around 9,000 concession kiosks in malls and shopping centers globally. The company warned that if a sale is not finalized quickly, it could be forced to close all of its stores.
Founded in 1961, Claire’s is best known for serving generations of American girls, many of whom experienced their first ear piercing at its stores. Since 1978, the retailer claims to have pierced more than 100 million ears. But this once-reliable rite of passage has lost ground to specialty chains like Lovisa, Rowan, and Studs, as well as online retailers such as SHEIN, which have eaten into Claire’s customer base.
Adding to the burden, more than half of Claire’s products are imported from China. Tariffs imposed under former President Donald Trump’s administration have inflated its costs by over $30 million since April 2025, further impacting margins.
Claire’s had filed for an IPO in 2021 but formally withdrew those plans in mid-2023.
