Iconic tween accessory retailer Claire’s has filed for Chapter 11 bankruptcy protection for the second time, as it grapples with mounting debt, supply chain volatility, and shifting consumer trends.
The Chicago-area-based brand, best known for ear piercings and glittery accessories, declared liabilities and assets each ranging between $1 billion and $10 billion in its latest bankruptcy filing. The move comes after a turbulent period marked by tariff uncertainties and rising import costs—largely due to the retailer’s dependence on Chinese manufacturing.
Claire’s, once a mall mainstay, continues to face pressure from the ongoing shift toward e-commerce giants like Amazon, as brick-and-mortar retailers struggle to stay relevant. Despite efforts to restructure, including working with advisers from Houlihan Lokey and Alvarez & Marsal, the company has been unable to stabilize its finances.
Now owned by investment firms Elliott Management Corp. and Monarch Alternative Capital —creditors who took control after its first bankruptcy in 2018—Claire’s is confronting a looming $500 million loan due in December 2026. In May, the company deferred interest payments on its debt in an attempt to conserve cash.
Currently operating 2,750 Claire’s stores across 17 countries and 190 Icing locations in North America, the retailer has significantly downsized from its 4,500-store footprint at the time of its first bankruptcy.
As the company enters another phase of restructuring, its future hangs in the balance amid a volatile retail landscape and tightening financial constraints.
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