Claire's, known for ear piercings and colorful jewelry, filed for Chapter 11 bankruptcy on August 6, 2023, as it faces declining foot traffic and rising costs. The brand, originally a wig shop in the 1960s, emerged from bankruptcy in December 2018. Despite a brief profitability surge in 2022, Claire's is now dealing with tariff costs and a significant decline in sales. The company plans to close around 700 US locations and warned of potential liquidation if no buyer is found, marking a critical moment for the once-thriving mall retailer.
Claire's filed for Chapter 11 bankruptcy for the second time in seven years on August 6, citing the 'continued trend away from brick and mortar' and higher interest rates.
After a 2018 bankruptcy filing, Claire's briefly surged in 2022 with IPO plans and a profitable year before things went south.
Now, hammered by tariff costs and fighting for its life, Claire's plans to close around 700 US locations and is warning that it could liquidate the rest of its North American operations if a buyer isn't found.
According to the website, the retailer has pierced more than 110 million ears.
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