Claire's, the tween jewellery and ear-piercing retailer, 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, which operates over 2,700 stores across 17 countries including the UK and France, filed papers with a court in Delaware revealing debts between $1bn and $10bn.
Uncertainty over Donald Trump's tariff policy has raised concerns about Claire's ability to repay a loan of nearly $500m (£375m) due in December 2026. Chief executive Chris Cramer described the decision as difficult but necessary, citing increased competition, changing consumer spending trends, and the ongoing move away from brick-and-mortar retail. He confirmed that stores in the US and Canada would continue trading while the company explores strategic alternatives.
In the UK, Claire's has appointed advisers from Interpath to consider options including a sale or insolvency, which could lead to widespread store closures. The company's UK sales fell nearly 1% to £136m in the year to 1 February 2024, with a pre-tax loss of £4m. It employs over 1,600 people in the UK. The French arm, operating 239 stores, called in receivers last month.
Claire's faces rising competition for services like ear piercing, now offered by retailers such as Superdrug in the UK. Other mall specialists have also struggled, with Forever 21 filing for bankruptcy in March and Macy's closing over 60 stores in 2025. The parent company of Claire's is controlled by former creditors Elliott Management and Monarch Alternative Capital after a previous bankruptcy in 2018.
