Bad news is swirling for Walmart — and it’s coming from the accessory aisle. Claire’s, the colorful jewelry and ear-piercing brand loved by tweens and teens, has filed for bankruptcy once again. This time, the fallout could put more than 700 of its U.S. retail outlets at risk, including the 300 “store-within-a-store” locations inside Walmart.
Unless a buyer swoops in, Walmart’s Claire’s mini shops — a partnership that started in 2018 — could be gone for good.
Claire’s glittering partnership with Walmart
Back in 2018, Claire’s brought its sparkly earrings, quirky hair clips, and ear-piercing stations right into Walmart’s massive stores. The deal was a win-win: Walmart got a trendy, youth-focused brand to pull in younger shoppers, and Claire’s gained access to Walmart’s huge foot traffic.
Today, Claire’s products are sold in 2,500 Walmart stores across the country. But the bankruptcy announcement has thrown the future of that presence into question. While products may still be available in some form, the dedicated mini-shop setups are looking shaky.
Why the closures Are happening
Claire’s currently operates about 1,300 standalone U.S. stores, plus 190 Icing stores, and more than 2,750 locations globally. But sales have dipped, and according to Bloomberg, the company has even skipped rent payments at certain stores in June and July.
Bankruptcy filings show that Claire’s is aiming to keep the brand alive by closing 700 stores to cut costs. That means fewer shopping mall Claire’s locations — and likely an end to many Walmart setups.
This isn’t Claire’s first dance with bankruptcy, either. In 2018, the company filed under heavy debt, owing about $2 billion. It managed to reorganize and bounce back that time, but the latest filing shows just how tough the retail landscape has become.
How bankruptcy works — and what it means for claire’s
Bankruptcy isn’t always the end. In fact, the kind Claire’s has filed — likely Chapter 11 — is designed to let companies restructure their debts, reorganize operations, and ideally keep running.
Here’s the quick breakdown:
- Chapter 11: Restructure debt, stay in business, maybe sell off some assets.
- Chapter 7: Liquidate everything and shut down completely.
- Chapter 15: Handle cases involving multiple countries.
Claire’s is hoping for a Chapter 11 survival story, but the store closures show they’re willing to shrink significantly to stay afloat.
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The challenge of selling to young shoppers
Claire’s CEO, Chris Cramer, made an interesting point in court. Unlike brands that can push shoppers online, Claire’s core audience is kids and young teens — customers who don’t typically have their own money, credit cards, or online accounts.
That means parents or guardians have to bring them into a physical store. And for many Claire’s fans, part of the fun is touching, trying, and seeing the products in person—something hard to replicate on a website.
Without a strong online sales channel, closing stores hits Claire’s harder than it might for other retailers.
Walmart could lose more than just Claire’s
For Walmart, losing 300 Claire’s mini stores wouldn’t be a financial disaster, but it would be a branding blow. These partnerships keep certain areas of the store fresh, trendy, and appealing to younger demographics.
Retail experts say that removing a shop-in-shop partner can leave a gap in customer traffic. In other words, parents bringing kids in for an ear piercing might also grab groceries, electronics, and clothes — a chain reaction Walmart won’t want to lose.
The bigger picture: Retail is changing
Claire’s story isn’t just about one brand. It’s part of a much bigger retail shift. Foot traffic in malls is down. Online shopping continues to grow. Inflation has people spending less on “fun” extras like jewelry and accessories.
Even well-known brands with decades of history are struggling to adapt. Partnerships like the one between Walmart and Claire’s were meant to bridge the gap, but they only work if both sides stay healthy.
Can Claire’s sparkle again?
The big question now: can Claire’s survive this second bankruptcy? The brand still has strong name recognition, loyal fans, and a global presence. But closing more than half of its U.S. stores will be a major hit.
If a buyer steps in, they might keep some Walmart mini stores alive. Without one, Walmart will have to figure out what — or who — fills that space.
A bit of retail history
Claire’s isn’t the only brand to try and revive itself through strategic partnerships. Other companies have used the store-within-a-store model:
- Sephora in Kohl’s brought beauty shoppers into a department store setting.
- Toys “R” Us in Macy’s tried to revive the toy giant’s presence.
- Starbucks in Target keeps customers lingering — and buying more.
The success of these partnerships depends on the financial stability of both partners. If one stumbles, the other feels it.
What shoppers should expect
For now, Walmart hasn’t made any official announcement about pulling Claire’s products or removing mini stores. But shoppers could start seeing changes soon. That might mean:
- Reduced product selection in Walmart.
- Fewer dedicated Claire’s spaces.
- More clearance pricing as stores wind down.
And in shopping malls, don’t be surprised if your local Claire’s suddenly has a “Closing Sale” banner in the window.
The takeaway
Claire’s bankruptcy is another reminder that even iconic brands aren’t immune to changing shopping habits, economic pressures, and shifting consumer behavior. For Walmart, it’s a potential loss of a partner that helped pull in younger customers. For shoppers, it’s a last chance to enjoy the full Claire’s experience before it’s downsized — or gone.
The sparkle isn’t gone yet, but it’s definitely dimmer. Whether Claire’s can shine again will depend on how it navigates the next few months, and whether someone steps in to help save those 300 Walmart mini stores from disappearing altogether.
