The jewellery and ear-piercing retailer Claire's has filed for bankruptcy in the US for the second time in seven years, citing a slowdown in consumer spending and the shift to online shopping. The company operates more than 2,700 stores across 17 countries, including 280 outlets in the UK.
In court documents filed in Delaware, Claire's disclosed debts of between $1bn and $10bn. Uncertainty over US tariff policy has raised concerns about its ability to repay a $500m loan due in December 2026. CEO Chris Cramer described the decision as difficult but necessary, citing increased competition and changing consumer habits.
In the UK, Claire's recently appointed advisers from Interpath to explore options, which could include a sale or insolvency process, likely leading to widespread store closures. UK sales fell nearly 1% to £136m in the year to 1 February 2024, with a pre-tax loss of £4m. The company employs over 1,600 people in the UK.
The group's French arm, operating 239 stores, entered receivership last month. Claire's faces rising competition, including from Superdrug in the UK, which now offers ear piercing services. Other retailers, such as Forever 21 and Macy's, have also struggled amid the shift to online shopping.
