Claire’s, an Illinois-based retailer, has announced that it will begin Chapter 11 bankruptcy proceedings to maximize the value of its business. CEO Chris Cramer cited pressure from increased competition, consumer spending trends, and the shift away from brick-and-mortar retail as factors affecting the decision. The company is in active discussions with potential strategic and financial partners and is committed to reviewing strategic alternatives.
Claire’s stores will remain open, but court documents identified 18 stores, including five Icing stores and 13 Claire’s locations, across 13 states for potential closure. The retailer, known for its affordable jewelry and accessories, has faced a steep debt load, tariffs, and increased competition. Currently, Claire’s has about $500 million in debt and between $1 billion and $10 billion in assets and liabilities. Other retailers that have filed for bankruptcy this year include At Home and JOANN, and mall-focused stores like Torrid have also been forced to close dozens of stores.
