Tween Retailer Claire’s Files Chapter 11 Bankruptcy Again

Claire’s, the teen-focused jewelry and accessory retailer, has filed for Chapter 11 bankruptcy.

This is the company’s second bankruptcy filing, after a previous filing in 2018. The top four listed creditors owed more than $14.7 million, including major landlords across the country, Chicago Business Journal reported.

“This decision is difficult, but a necessary one,” said CEO Chris Cramer in a press release. The chief executive cited “increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail” for the move.

The announcement follows reports that the retailer had started skipping rent payments at several locations across the country in preparation for the filing. The chain, based in the Chicago suburb Hoffman Estates, operates more than 1,350 locations across the country, often in regional malls, with stores averaging about 1,000 square feet.

It is unclear how many and which stores may close, but financial consultant Debtwire told the outlet it expects a large percentage of the company’s locations may be on the chopping block or even that the company could face liquidation.

On top of the debt obligations outlined in this filing, Claire’s has a loan of almost $500 million due at the end of 2026.

This bankruptcy comes amidst a broader retail downturn. Net occupancy in this sector was down 6.6 million square feet this quarter, following a negative net absorption of 7.1 million square feet in the first quarter, according to Cushman and Wakefield, marking the worst two-quarter stretch since 2020.

Party City, Big Lots, Joann’s, The Container Store, and Rite Aid have all recently filed for Chapter 11, contributing to retail vacancy struggles. Uncertainty around U.S. tariff policy is causing hesitation in the sector, and may have been a further challenge for Claire’s.

Long a staple in American shopping malls, Claire’s claims to have pierced more than 100 million ears during its 64 years in business.

— Quinn Waller