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.
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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.
