Claire’s Files Chapter 11 Amid Online Competition

Claire's, the mall-based accessories retailer, has filed for Chapter 11 bankruptcy protection in the U.S. for the second time since 2018, citing mounting debt, weak consumer demand, and competition from online retailers such as Amazon, Shein, and Temu. The company, which operates over 2,750 stores in 17 countries, reported assets and liabilities between $1 billion and $10 billion and has deferred some debt payments to conserve cash. While its North American stores will remain open during the proceedings, Claire's is seeking strategic or financial partners and considering all alternatives, including a sale or restructuring. Tariffs and macroeconomic challenges have also contributed to its financial struggles. The UK division, though not immediately affected, is at risk due to ongoing losses and failed takeover discussions. Retail analysts warn that Claire's faces significant challenges to staying relevant in a shifting retail environment.