Claire’s Files Second Bankruptcy Amid Debt and Closures

Claire’s, a retailer specializing in jewelry and accessories for preteens and teens, has filed for Chapter 11 bankruptcy protection for the second time in seven years, citing assets and liabilities between $1 billion and $10 billion. The company faces a $496 million loan due by the end of 2026 and has stopped paying rent and interest on some debts to conserve cash. Financial struggles are attributed to declining mall traffic, competition from online retailers, tariffs on imports from China and other Asian countries, and shifting consumer demand. Claire's is actively seeking buyers or restructuring options, especially for its UK business, where large-scale store closures are possible. Owned by Elliott Management and Monarch Alternative Capital since 2018, Claire’s bankruptcy highlights ongoing challenges in the retail sector in 2025. The fate of many Claire’s locations remains uncertain as the restructuring process continues.