Report: Claire's inches closer to bankruptcy after missing rent

Daily Mail​

a day ago

Another mall icon slips toward bankruptcy as missed rent payments and debt pile up. Claire's — the suburban Chicago-born chain that helped generations of tweens pierce their ears and make friendship bracelets — is reportedly racking up millions in debt. Founded in 1961, the retailer became a mall mainstay thanks to its ear piercings, glittery jewelry, and shelves stacked with trend-chasing trinkets for tween and teen girls.
Claire's missed rent on some stores in June and July, according to Bloomberg , and has been hunting for a buyer since late June . It's also staring down nearly $500 million in loans due by the end of 2026. In May, the chain reportedly skipped interest payments to conserve cash — a classic sign of distress. A restructuring team is now steering operations behind the scenes. A source told Daily Mail that stores will stay open during the negotiations.
But missed rent payments may foreshadow store closures — and potentially the end of one of America's last chains dedicated solely to young girls and early teens. A representative for Claire's didn't immediately respond to DailyMail.com's request for comment. Claire's stores are often a rite of passage for middle school-aged kids, featuring a vast array of glittery plastic earrings, necklaces, rings, keychains, and hats.
The cheap, glitzy fashions often have price tags under $10. But that accessibility comes at a cost: Claire's has long relied on inexpensive imports from China to keep prices low. Products produced in China are currently facing a 30 percent tariff as part of President Donald Trump's signature economic policy. They could be subject to even higher import fees, depending on current negotiations between US and Chinese officials. A pause on larger tariffs for Chinese-produced goods is set to end in mid-August.
Meanwhile, inflation-strained consumers have rapidly cut back on their retail spending , casting doubt on Claire's future outlook. Claire's said it pulled in about $1.3 billion in sales last year from its global stores, according to documents seen by Bloomberg. The company generates the bulk of its revenue — roughly $720 million — from its North American stores. Claire's has faced steeper financial struggles in the past. The company declared bankruptcy in 2018 after it was unable to repay its loans. It exited bankruptcy seven months later after wiping close to $1.9 billion from its balance sheet.
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