Tween Temple Claire’s Goes Bankrupt Again Amid Debt, Tariff Uncertainty

Claire’s, once a haven for tweens looking for the latest jewelery and fashion trends, has filed for bankruptcy for the second time this decade.

The American retailer, which sells jewelry and accessories, announced Wednesday that it has begun voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware, as well as in Canada for its Canadian affiliates’ stores. The moves are in response to several problems it’s faced in the past few years, including an accumulation of debt, increased competition and “macroeconomic factors” such as tariffs.

Claire’s has a $496 million loan due in December 2026, and it has stopped making rent payments, CNN reported.

The bankruptcy proceedings will allow Claire’s to “maximize value for the business” while having discussions with “potential strategic and financial partners,” the announcement said.

“This decision is difficult, but a necessary one,” Claire’s CEO Chris Cramer said in a statement. “Increased competition, consumer spending trends, and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire's and its stakeholders.”

All Claire’s retail stores in the U.S. and Canada will remain open as the company “explores all strategic alternatives,” according to the announcement.

Claire’s first filed for bankruptcy in 2018, and cut its store footprint from more than 4,500 locations across the globe to its current number of about 2,750 stores, CNN reported.

The filing also comes as more and more retailers dependent on imports from foreign countries, like Claire’s, face a steep increase in costs in response to tariffs under the Trump administration.

The U.S., which currently has a 30 percent tariff on Chinese imports, is set to impose further levies Thursday, after President Donald Trump pushed back the deadline multiple times.

In addition to tariffs, Claire’s has faced mounting pressure and competition from online retailers, as retail e-commerce sales are estimated to hit $4.3 trillion worldwide in 2025, according to Statista.

Claire’s also follows a string of retailers that filed for bankruptcy this year, including fast-fashion retailer Forever 21 and furniture company At Home.

Isabelle Durso can be reached at idurso@commercialobserver.com.