Claire’s Files for Bankruptcy — Again. What Went Wrong for the Teen Jewelry Giant?

Remember Claire’s — the mall staple where you got your ears pierced and loaded up on glittery accessories before heading to the food court? Well, the iconic teen jewelry chain just filed for bankruptcy again, marking its second go-round in seven years.

The company filed for Chapter 11 protection on Wednesday in Delaware, hoping to restructure its business and avoid going under. Claire’s also plans to launch similar proceedings in Canada.

“This decision wasn’t easy, but it had to be made,” said CEO Chris Cramer in a statement.

He blamed everything from heavy debt and rising competition to shifting shopping habits and a rough economy. Despite the filing, Claire’s stores across North America — including its sister brand ICING — will stay open for now as the company explores a possible sale or other lifelines.

Once the go-to spot for preteens and teens hunting for hoop earrings and butterfly clips, Claire’s has been struggling to keep up with the times. It now operates around 2,750 stores globally (down from over 4,500 at its peak), and faces stiff competition from both online retailers and trendier brick-and-mortar rivals like Lovisa and Studs.

Tariffs haven’t helped either. Claire’s relies heavily on importing cheap goods from countries like China and Cambodia — markets that were hit hard by Trump-era trade policies.

According to Bloomberg, the company has a massive $496 million loan due in December 2026 and has already stopped paying interest and rent on unprofitable stores. Court documents estimate Claire’s owes somewhere between $1 billion and $10 billion and has as many as 50,000 creditors.

This isn’t the first time Claire’s has tried to escape a financial bind. It filed for bankruptcy back in 2018 to shed nearly $2 billion in debt. At the time, activist investors Elliott Management and Monarch Alternative Capital took over and helped inject $575 million in new capital to keep stores running.

Things were briefly looking up — Claire’s started selling in Walmart and saw a big sales boost in 2021. It even flirted with an IPO in 2022. But by 2023, it scrapped those plans, and the momentum fizzled.

Now, with a second bankruptcy filing, the chain is once again fighting to stay afloat in a retail world that’s moved far beyond shopping mall corridors.

Retail analyst Neil Saunders of GlobalData didn’t mince words:

“Claire’s has been hit with a cocktail of problems, both internal and external. It couldn’t manage its debts or modernize fast enough to keep up.”

He added that newer competitors are doing a better job connecting with Gen Z and younger shoppers — offering curated, Instagram-worthy products at value prices. Meanwhile, foot traffic in many of the lower-tier malls Claire’s calls home has been steadily declining.

With digital-first brands and fast fashion outlets pushing harder into accessories, the market’s gotten crowded — and Claire’s is looking more like a relic of the past than a player in the present.

Still, the company is keeping its doors open — for now — and says it’s actively looking for partners or buyers. Whether it can bounce back again or fade into mall nostalgia remains to be seen.

With input from the New York Times, CNN, and CNBC.