Iconic teen retailer Claire’s files for bankruptcy again
Claire's retail stores have filed for bankrupcy for a second time as they struggle to compete with online retailers such as SHEIN and Temu.
Image: Claire's
Claire’s, the iconic teen and tween jewellery and accessories retailer, has filed for bankruptcy in the United States for the second time in seven years
Known for its vibrant accessories and ear-piercing services, the chain, familiar to many South Africans through its Clicks partnerships and outlets in malls from Mall of Africa to Canal Walk, now faces an uncertain future.
In Delaware court filings, Claire’s outlined plans to close roughly 700 stores across North America, including those under its Icing brand, while seeking a buyer for around 800 remaining outlets.
Upon announcing the filing, Claire’s CEO Chris Cramer described the choice as “difficult, but necessary, citing increased competition, shifting consumer habits, debt obligations, macro-economic headwinds and continued trend away from brick-and-mortar retail stores.
Once a mainstay of mall culture, and among the mall staples of the 1990s, Claire’s has seen its fortunes decline despite a previous resurgence.
After its first bankruptcy filing in 2018, the company shed substantial debt and briefly turned profitable by 2021.
However, a perfect storm of rising tariffs on imported goods, particularly from China, combined with online fashion rivals such as SHEIN and Temu, and alternative piercing providers such as Lovisa and Studs, has steadily eroded its position.
Claire’s is not alone. The latest wave of retail casualties, including Forever 21 and At Home, underscores how mall-based, chains are struggling to adapt in an increasingly digital landscape.
For consumers in South Africa, where Claire’s remains embedded in the teenage retail fabric, from standalone stores to ear-piercing services in Clicks, the disruption serves as a timely reminder of broader shifts in shopping norms and the fragility of once-dominant physical brands.
IOL Lifestyle