[Update as of Aug. 8, 2025] In court documents related to its recent bankruptcy filing, Claire’s identified 700 stores that are “not viable under current lease terms or are underperforming.” These stores include the more than 200 Claire’s shop-in-shops located in Walmart stores as well as its 120 stores under the Icing banner, which appeals to shoppers older than the Claire’s target age range of three to 18 years old. The retailer plans to exit the Icing banner and focus solely on its namesake brand.
However, with no potential buyer in sight, the fate of Claire’s remaining 800 North American stores also is up in the air. According to the bankruptcy filing, Claire’s plans to “pursue a value-maximizing transaction” for these locations, 700 of which are operated by Claire’s debtors, with the remainder run by a non-debtor affiliate in Canada.
“As of the Petition Date [Aug. 6, 2025], an actionable going-concern sale has not materialized for these remaining 800 stores, and unless a going-concern purchaser emerges in the immediate near term, the debtors intend to exit all of their physical store locations,” according to the document filed in the U.S. Bankruptcy Court for the District of Delaware.
[Update as of Aug. 6, 2025] Claire’s has begun voluntary bankruptcy proceedings in the U.S. and Canada. The tween-favorite accessories retailer, which operates nearly 2,000 stores globally, filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware on Aug. 5 and intends to commence proceedings in Canada under the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice.
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“This decision is difficult, but a necessary one,” said Chris Cramer, CEO of Claire’s in a statement. “Increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire’s and its stakeholders. We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”
Claire’s North American stores will remain open and continue to serve customers as the company explores these alternatives. Claire’s U.S. intends to seek approval for a consensual use of cash collateral to ensure it has the liquidity necessary to support operations.
Original story from July 1, 2025 begins-
Claires Explores Sale as Competition, Tariffs Dampen Business Outlook
Tween-favorite accessories retailer Claire’s is considering selling all or parts of its business, according to Bloomberg, which cited people familiar with the matter. The retailer, which sources much of its product from China, has been hit hard by the recent tariffs as well as mounting competition.
The company has been primarily owned by Elliott Management and Monarch Alternative Capital since its bankruptcy in 2018. Now, bankers at Houlihan Lokey have been engaged to lead a search for potential buyers. Claire’s currently operates nearly 2,000 stores globally, 190 of which are under the Icing banner. The company had planned to go public in 2021, but scrapped those plans two years later.
Since then, Claire’s has been busy building out its IP to facilitate a transformation into a full-blown lifestyle brand. In addition to its standalone stores, the company forged wholesale and shop-in-shop partnerships with other retailers, including Walgreens, Kohl’s and Macy’s, as well as expanded its branded retail presence in new territories like Mexico.
Additionally, Claire’s has worked to boost mindshare among Gen Z and Gen Alpha consumers by developing its digital presence via channels such as audio podcasting and storytelling and the metaverse, in addition to launching a new loyalty program targeted specifically to its young consumer set.
However, all of that may not be enough to offset the pressures of the current economic climate. A $500 million loan comes due in December 2026, and Claire’s recently chose to defer interest payments on that debt to conserve cash, Bloomberg reports. In June 2024, CEO Ryan Vero — who was brought in to lead the company in 2019, nine months after Claire’s exited bankruptcy — stepped down, leaving COO and CFO Chris Cramer to take over on an interim basis.
