Claire’s, a popular tween mall staple known for its ear-piercing and glittery accessories, has filed for bankruptcy protection for the second time in seven years. The company is struggling with new tariff costs due to President Trump’s renegotiation of world trade.
Tariffs on imports from China have added significant costs for Claire’s, which imports most of its products from the Asian country. This has further weakened the chain’s financial position, just ahead of a nearly $500 million loan that is due in December 2026.
CEO Chris Cramer cited “increased competition, consumer spending trends, and the ongoing shift away from brick-and-mortar retail” as reasons for the filing. Claire’s has been trying to adapt to changing consumer behavior by expanding its online presence and partnering with popular brands like Disney and Mattel. However, these efforts have not been enough to stem the decline of its sales.
The company filed for bankruptcy protection on Wednesday, but plans to keep its North American stores open during the process. Its Canadian arm has also announced plans to pursue a similar bankruptcy proceeding.
Claire’s was once a fixture of malls in the US and abroad, but its popularity peaked in the early 2000s. The chain underwent significant changes after being acquired by private-equity firm Apollo in 2007. Despite efforts to revamp its business, Claire’s has struggled to compete with online retailers like Amazon and Walmart, as well as fast-fashion brands like Shein and Temu.
In its previous bankruptcy in 2018, Claire’s reduced its debt by $1.9 billion. However, the company is now facing increased pressure, and its financial future remains uncertain.
Source: https://www.npr.org/2025/08/06/nx-s1-5468605/claires-ear-piercing-accessories-bankruptcy