Claire’s, a well-known accessories retailer with more than 2,750 stores worldwide, has filed for Chapter 11 bankruptcy in the United States and plans to do the same in Canada. The company announced it will keep stores in North America open during the process but will close 18 U.S. locations as part of its restructuring plan.
In court filings, Claire’s cited a challenging commercial environment over the past several years, with tariffs playing a significant role in driving up operational costs. Additional pressures included inflation, shifting consumer spending habits, and increased competition from both traditional and online retailers. CEO Chris Cramer noted that these macroeconomic factors, combined with existing debt obligations, made this move necessary to stabilize the business.
Analysts say that tariffs have been particularly difficult for Claire’s to absorb, adding to financial strain while the retailer works to adjust to changing trends and reduced foot traffic in malls. The company is currently in discussions with potential strategic and financial partners and is evaluating the sale of some or all of its assets. The restructuring aims to lower debt and position Claire’s for future stability in a competitive retail market.
