Claire’s, the US-based jewellery and accessories retailer with around 2,750 stores worldwide, has filed for Chapter 11 bankruptcy protection in the US for the second time in seven years, citing mounting debt, reduced store footfall, changing consumer spending patterns and tariff-related cost increases on imported goods.
The filing, made in the US Bankruptcy Court for the District of Delaware on 6 August, comes as Claire’s faces a $496 million loan due in December 2026. The retailer is seeking a buyer and may close around half of its US outlets, with the potential for full store closures if no sale is agreed.
Store Closures and Global Footprint
Claire’s currently operates across 17 countries, including about 190 Icing-branded stores in North America. This is down from more than 4,500 stores globally at the time of its first bankruptcy in 2018. North American stores will remain open during the restructuring process, though the company has suspended rent payments on some underperforming locations.
Supply Chain Dependence and Tariff Impact
Between November and April, approximately 70% of Claire’s inventory for North America was sourced from suppliers outside the US, predominantly in mainland China, as well as Vietnam, Thailand, Cambodia, Bangladesh, Taiwan and India. Many of these countries have been affected by US tariffs introduced under the Trump administration, increasing the cost of imported goods.
CEO Chris Cramer said in a statement: “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.”
Industry Implications
Claire’s situation underscores the challenges facing retailers that depend on lower-cost imported jewellery and accessories. Tariff-related price pressures and a shift towards e-commerce have added to competitive pressures in the affordable fashion jewellery sector. For suppliers, particularly in Asia, the bankruptcy raises questions about future order volumes and payment stability. For shopping centre operators, the potential closure of hundreds of Claire’s locations would reduce tenancy levels, particularly in mid-tier malls where the brand has maintained a significant presence.
Claire’s joins other retailers, including Forever 21, At Home and Liberated Brands, in filing for bankruptcy in 2025, reflecting wider pressures in the mid-market retail segment.
