Claire's regained popularity with Gen Z and Gen Alpha but remained financially strained after its 2018 restructuring. The company removed nearly $2 billion in debt, hired retail executives, and launched "store within a store" concepts at Walmart and CVS while eyeing an IPO. Persistent liabilities included about $500 million in remaining debt and a bloated footprint of roughly 3,000 stores. Operational decline left stores untidy and stocked with generic merchandise, yet global sales reached $1.3 billion in 2024. Claire's filed for bankruptcy again in early August and was acquired for $104 million, with store trimming underway.
After a 2018 bankruptcy, Claire's underwent a strategic restructuring that eliminated nearly $2 billion in debt and appeared to be headed toward a turnaround. It hired top talent like Kristin Patrick, former executive at Gap and Calvin Klein, who became CMO. And it opened "store within a store" concepts at Walmart and CVS. Back then, the company said it was headed toward an initial public offering that could raise up to $100 million.
All of this meant the company couldn't focus on innovating on its products or stores. And it showed. Walk through a Claire's store today, and you'll likely find it untidy and disorganized. The store fixtures are stuffed with generic products similar to those sold by Walmart and Shein. And yet, despite offering this terrible shopping experience, Claire's still managed to generate $1.3 billion in global sales in 2024, roughly $720 million of it in North America. (Claire's declined to comment on this story.)
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