Its the second time in seven years the jewelry retailer has restructures
of ConsumerAffairsAugust 7, 2025
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Claires U.S. files for Chapter 11 bankruptcy in Delaware, with a similar filing planned in Canada.
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The company will continue operating stores across North America during the proceedings.
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CEO Chris Cramer cites market shifts and debt pressure as drivers behind the restructuring move.
For the second time in seven years, Claire’s Holdings LLC, the global accessories and jewelry retailer known for its Claires and ICING stores, has filed for Chapter 11 bankruptcy protection.
The filing, made in the U.S. Bankruptcy Court for the District of Delaware, comes as the company attempts to restructure its operations and maximize business value amid challenging retail conditions.
In parallel, Claires also intends to initiate proceedings in Canada under the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice. These combined efforts are aimed at facilitating a strategic monetization of Claires assets and creating room to evaluate new partnerships and business alternatives.
The retailer has been a longtime favorite of the tween age group, populating malls across America. For many young people, its where they got their ears pierced. But lately, the company has struggled to become profitable.
Claires cited a confluence of economic and industry-wide pressures as key reasons behind the bankruptcy decision, including intensified market competition, evolving consumer spending behavior, and the broader migration away from physical retail shopping. The weight of existing debt obligations and macroeconomic uncertainties further exacerbated the situation, prompting the company to seek legal protection as it charts a new course.
Difficult but necessary
This decision is difficult, but a necessary one, said Claires CEO Chris Cramer. We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.
Cramer also extended his gratitude to the company’s employees, acknowledging their continued commitment to providing exceptional service and products in an increasingly complex market.
Despite the filings, Claires said that its retail locations in both the U.S. and Canada will remain open and continue serving customers. The company is also pursuing court approval for standard first day motions that will allow it to honor its obligations to employees, vendors, and partners. These motions include continued payment of wages and benefits, a signal of Claires intention to operate business as usual throughout the restructuring process.
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