Teen accessories retailer Claire’s, known for its ear piercing services, has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court in Delaware. This is the second time the company has sought bankruptcy since 2018 due to high debt and changing consumer preferences.
Claire’s operates over 2,750 stores across North America and Europe, but its struggles with debt and competition from online retailers have led to this decision. The company’s CEO, Chris Cramer, said that increased competition, spending trends, and macroeconomic factors forced the decision.
Analysts predict that Claire’s will continue to serve customers, explore strategic alternatives, and maintain relationships with suppliers and landlords. However, Neil Saunders of GlobalData noted that the company’s internal problems, including high debt levels and tariffs, made it impossible to stay afloat.
The bankruptcy filing comes as consumer preferences shift towards online shopping. Online retailers like Amazon and Shein have intensified competition for brick-and-mortar stores. Claire’s will explore opportunities with potential partners to restructure its operations and manage its debt.
Source: https://apnews.com/article/claires-bankruptcy-accessories-teens-tariffs-e23bfc6e5f7dfd395a527d9290fa51b7