Claire’s, the mall jewelry store where thousands of American teens have had their ears pierced, filed for Chapter 11 bankruptcy Wednesday for the second time in seven years.
The chain plans to continue operating all of its U.S. and Canada locations during the bankruptcy process, according to a press release.
In its bankruptcy filing, Claire’s listed between $1 billion and $10 billion in both assets and debt, the Guardian reported. It is also staring down a $500 million loan repayment in December 2026.
“This decision is difficult, but a necessary one,” CEO Chris Cramer said in a statement. “We remain committed to serving our customers and partnering with our vendors and landlords in other regions during this time.”
Cramer blamed “increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail” for Claire’s latest bankruptcy filing. Despite its status as a suburban childhood staple, the chain has had a turbulent 10-year run.
Claire’s first filed for bankruptcy back in 2018, blaming similar larger economic factors for its demise. Following that process, its two main creditors, hedge funds Elliott Management and Monarch Alternative Capital, took control of the company.
By 2021, Claire’s was on the verge of going public, but it reversed course late in the process. The chain has been run by private equity groups since 2007, when Apollo Global Management bought it for $3.1 billion just before the Great Recession.
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