Claire’s is one of the mall jewelry store chains. It has filed for bankruptcy yet again. Moreover, this is the second time that they have gone through this process. This comes at a time when most of the retail stores face a blooming crisis. The store is known for its jewelry, earrings, and teen fashion accessories. Thus, it is attempting to stay open during its financial crisis. Continue reading to know more about Claire’s bankruptcy and the stores that are closing down.
What Is Going On With The Bankruptcy?
The retail store is based in Hoffman Estates, Illinois, near Chicago. It announced its bankruptcy on August 6. Also, the company stated that most of its stores will remain open. This is even as it explores its final options. Its parent companies are Claire’s Holdings LLC and Claire’s U.S. Now, they are striving hard to regain their options. This is the second time that they have filed for bankruptcy. The last time was in March 2018. Also, the company has been struggling to stay afloat since then.
Reasons for Filing Bankruptcy
The company decided to file for bankruptcy due to several discrepancies. These include strong competition from other fast fashion websites. Along with this, changing shopping habits and difficulties caused by the economy are also some of the reasons.
The rise of websites such as Shein and Temu has driven away several customers from this store. Teenagers and young customers are now opting for jewelry and other accessories online. These are also offered at relatively lower prices.
Moreover, other reasons include rising interest rates, inflation, and tariffs on goods. These are goods imported from China. Hence, these factors have contributed to Claire’s staying out of business for a long time.
Past Financial Troubles
The store has been in financial trouble since 2018. It tried enough to find a buyer for its businesses. However, it has not succeeded so far. Also, the company had identified eighteen stores. These were identified to be closed down to help improve its finances.
Along with this, Claire’s delayed payments on its debts earlier this year. This was done to hold on to cash. The company is concerned about paying a large loan of $475 million, according to Bloomberg. This is due to be paid in December 2026.
Moreover, a spokesperson from the company mentioned that the store has been falling behind. This is with regards to their bills and financial responsibilities. Thus, this pattern has stayed for too long. Now, it shows that they cannot keep up with their payments. Along with that, they are not able to keep the stores running smoothly. Hence, they have decided to file for bankruptcy.
List of Claire’s Closing Down
The company has announced that 18 of its stores will be closed down. These stores will hold clearance sales. Then, they will shut down by September 7, 2025 at the most. Also, some of these stores may close earlier. The company has not mentioned if more stores will close in the future. The list of stores that are closing down is listed below.
1. Eastdale Mall, Montgomery, Alabama
2. Newpark Mall, Newark, California
3. Ford City Mall, Chicago
4. Market Street, Lynnfield, Massachusetts
5. Bay City Town Centre, Bay City, Michigan
6. Northtown Mall, Blaine, Minnesota
7. Livingston Mall, Livingston, New Jersey
8. Uniontown Mall, Uniontown, Pennsylvania
9. Shops at Highland Village, Highland Village, Texas
10. Pinnacle at Turkey Creek, Knoxville, Tennessee
11. Junction Commons, Park City, Utah
12. Provo Town Center, Provo, Utah
13. Woodinville Plaza, Woodinville, Washington
Next Steps For the Claire Company
The company has mentioned that they will keep some of the stores open. This is despite the fact that most of these stores are closing. Also, they mentioned that they would like to continue serving their customers. They would also like to find new ways to stay profitable. The store closures are a larger part of a plan to recover from their financial issues. Thus, they hope to reorganize their business and perhaps find new investors or partners.
Why are More Retail Stores Facing The Same Issue?
Claire is not the only store struggling at the moment. There are several other stores that are also facing the same financial discrepancy. These stores are also filing for bankruptcy. Some of them include Home Depot, Big Lots, Joann Fabrics, Kohl’s, among others. Several stores have faced the issue because customers are shifting to online purchases. Now, they are visiting malls less often. Also, the rising costs, inflation, and tariffs make it more difficult for the stores to stay functioning.
Icing Stores Closing Down
Along with Claire’s, there is another store that is closing down. This is Icing, also a jewelry and accessories brand. They are also owned by Claire’s. Moreover, they are closing down 5 of their stores. The list of Icing stores closing down is mentioned below.
- Galleria at Tyler, Riverside, California
- Woodland Mall, Grand Rapids, Michigan
- Greece Ridge, Rochester, New York
- Mall of Abilene, Abilene, Texas
- University of Orem, Orem, Utah
Conclusion
Claire’s has been a renowned store for teenagers and youngsters for a long time. It has housed jewelry, earrings, as well as other fashion accessories. It was seen as affordable and a fun store for several years. Also, it included most of the trendy items. However, with the rise in online shopping and inflation prices, the store has decided to file for bankruptcy. The increase in competition from other stores online has caused the company to shut down 18 of its stores. Mall culture is thus seeing a decline in shopping and expenditure. This trend is noticed in other stores as well. Tariffs on goods and higher interest rates do not make this process any simpler. Although they have decided to shut down most of the stores, a few of them still remain open. Most of these stores will be closed down by September 7. The company has decided to find other sources to adapt to the trending market prices.
