The tween jewellery and ear-piercing retailer Claire’s has declared bankruptcy in the US for the second time in seven years amid a slowdown in consumer spending and the switch to online shopping.
The US accessories retailer, which has more than 2,700 stores in 17 countries including the UK and France, said in papers filed with a court in Delaware that it had debts of between $1bn and $10bn.
Uncertainty about Donald Trump’s tariff policy has raised questions about Claire’s ability to deal with a loan of nearly $500m (£375m), which is due for repayment in December 2026.
Chris Cramer, the chief executive of Claire’s, said: “This decision is difficult, but a necessary one. Increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire’s and its stakeholders.
“We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”
He said stores in the US and Canada, where the business is also starting bankruptcy proceedings, would continue to trade while the company “continues to explore all strategic alternatives”.
In the UK, Claire’s, which has at least 280 outlets, recently appointed advisers from Interpath to consider options for its future – which could include a sale or insolvency process, both of which are expected to lead to widespread store closures.
UK sales slipped back nearly 1% in the year to 1 February 2024 to £136m when it made a pre-tax loss of £4m after a £5m loss the year before, according to the latest accounts filed at Companies House. The documents indicate the firm employs more than 1,600 people.
The group’s French arm, which operates 239 stores, called in receivers last month.
High street and shopping mall specialists are struggling as consumers rein in spending and look for bargains online. Claire’s is also facing rising competition around the world for its services such as ear piercing, which is now carried out by the likes of Superdrug in the UK, for example.
Other mall specialists have also taken a hit in the US. The fast-fashion retailer Forever 21 filed for bankruptcy in March, saying it would wind down its US operations after being hit by mounting online competition from online specialists such as Shein and dwindling customer numbers in stores.
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The department store chain Macy’s is closing more than 6o outlets in 2025 as part of a programme to shut 150 stores over the next three years. Last year, big chains including 99 Cents Only and Rite Aid used the Chapter 11 bankruptcy protection to restructure their operations.
The parent company of Claire’s is controlled by former creditors Elliott Management and Monarch Alternative Capital after a bankruptcy process in 2018.
At that time the company was looking to restructure $1.9bn in debts it built up after being taken over by the private equity firm Apollo Global Management in 2007.