Accessories retailer Claire’s Holdings LLC filed for Chapter 11 bankruptcy protection Wednesday, marking the second time in seven years the struggling chain has sought court protection as it battles mounting debt and fierce competition.
The company, known for its jewelry and ear-piercing services targeting tweens and teens, also filed for creditor protection in Canada. Claire’s listed assets and liabilities of between $1 billion and $10 billion in court documents.
“This decision is difficult, but a necessary one,” CEO Chris Cramer said in a statement, citing increased competition and changing consumer spending patterns.
The Hoffman Estates-based retailer plans to close 18 underperforming stores by September 7, mostly in struggling shopping centers. The company said it will continue operating its remaining 1,326 U.S. locations while exploring strategic alternatives, including potential sales.
Claire’s had been missing rent payments at multiple locations in June and July, signaling financial distress ahead of the filing. The chain faces intense competition from online retailers like Shein and Temu, which offer similar products at competitive prices.
Founded in 1961, Claire’s previously filed for bankruptcy in March 2018, eliminating $1.9 billion in debt before emerging seven months later under new ownership. Elliott Management Corp. and Monarch Alternative Capital currently control the company.
The retailer abandoned plans for an initial public offering in 2023 after withdrawing a previous IPO attempt. Claire’s operates stores across 37 countries and claims to have performed more than 100 million ear piercings over 25 years.
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