In spite of its links with Walmart and Macy’s, Claire’s has filed for bankruptcy. Claire’s Accessories, the nostalgic mall favorite of the 1990s where multiple generations of tweens got their first ears pierced and glittery baubles were bought, is filing for Chapter 11 bankruptcy protection in the United States for the second time. The deals with Walmart and Macy’s to expand reach have now turned against the chain to face the closing down of nearly 1,300 U.S. stores and a far-reaching restructuring of debt.
Details of the Chapter 11 Filing
On August 6, 2025, Claire’s filed its petition with the Bankruptcy Court for the District of Delaware and listed estimated assets and liabilities with values between $1 billion and $10 billion. The petition shows 25,001-50,000 creditors, revealing the size of its obligations. This is the second bankruptcy for the retailer since 2018 when it emerged from another Chapter 11 that slashed about $1.9 billion in debt.
Founded in 1961 in Chicago, Claire’s ballooned to about 2,750 locations across 17 countries at its peak. However, dwindling mall traffic in the U.S., competition from fast fashion players doing e-commerce, and rising import costs due to tariffs have reduced foot traffic and profit margins. Liquidity was further threatened by a near $500 million loan that matures in late 2026.
Walmart partnership: Expanding footprint
Claire’s entered into its first store-within-a-store concession in Walmart outlets in 2018. By tapping into the vast customer base of Walmart, Claire’s would expand its partnership into over 2,500 Walmart locations by late 2021. The concession sales rose to 70% year-on-year via Walmart.com, which included 360 dedicated mini-stores there.
In late 2022, Claire’s launched 21 shop-in-shop boutiques inside Macy’s flagship stores-from Herald Square, NY, to South Coast Plaza, CA-peddling hair accessories, jewelry, cosmetics, and seasonal styles. This alliance aimed at diversifying Claire’s retail footprint while attracting Macy’s Gen Zα shoppers through an “experience-driven” environment both co-branded by the icons.
Overwhelming headwinds
Despite these partnerships, Claire’s could not fend off:
- Digital disruption: Price-shy teens deserted for online platforms like Amazon and Temu.
- Tariff pressure: U.S. import tariffs upped the costs on Chinese-made accessories by as much as 30%.
- Debt-servicing: The hefty debt load arising from private-equity buyouts in 2007 and 2018 left little room for investing in omnichannel growth.
In Chapter 11, Claire’s will remain operating while it reviews store closures, renegotiating leases, and its strategic alternatives, including asset sales or new capital infusion. The management states that this bankruptcy is a “difficult but necessary” step toward resizing its business, maintaining the core brand, and building out digital and profitable channels.
Goodbye to an era
With the phasing out of over 1,300 locations in U.S. malls, the day marks the end of an era for everyone who remembers adolescent rite of passage visits to the counters of Claire’s. Whether it manages to re-emerge cut-down or quietly enters retail history, the tale of the saga reveals the brutally difficult path facing brick-and-mortar mall retailers in an e-commerce world.
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