Claire’s, the popular shopping mall chain, has filed for Chapter 11 bankruptcy protection for the second time in seven years. The company cited increased competition from online retailers and a shift away from brick-and-mortar retail as reasons for its financial struggles.
With over 100 locations in California and 15 in the Los Angeles area, Claire’s operates 2,750 stores across 17 countries. Despite this, the company has seen shrinking margins and is struggling to compete with low-cost online retailers such as Shein and Temu.
In a statement, CEO Chris Cramer said that the decision to file for bankruptcy was “difficult but necessary.” He cited increased competition, consumer spending trends, and macroeconomic factors as contributing factors. Claire’s will continue to explore strategic alternatives and is in discussions with potential financial partners.
The company’s decline aligns with the decreasing popularity of malls in recent years. Experts say that online shopping has become a dominant trend among younger generations, making brick-and-mortar stores less relevant.
Claire’s was founded in 1961 as a chain of wig stores and eventually rebranded itself as a symbol for kitschy fashion and girlhood. However, the company’s failure to adapt to changing consumer habits and increasing competition from online retailers has ultimately led to its financial struggles.
Source: https://www.latimes.com/business/story/2025-08-06/teen-destination-claires-files-for-second-bankruptcy