The basics:

• Claire’s files for Chapter 11 bankruptcy in Delaware
• Retailer cites rising debt, tariffs, slowing consumer demand
• Identifies +1,100 stores for possible closure
• With 26 locations in New Jersey; almost all on list for possible shutdown

Amid a slowdown in consumer spending and supply chain uncertainty, once beloved mall staple Claire’s filed for Chapter 11 bankruptcy protection.

In an Aug. 6 petition filed in U.S. Bankruptcy Court in the District of Delaware, the Chicago-based company listed liabilities and assets of $1 billion to $10 billion each. It also reported having more than 25,000 creditors.

The move comes two days after Bloomberg reported that Claire’s weakened cash flow and heavy debt burden prompted it to explore restructuring options, including a possible sale.

As part of its Aug. 6 court filings, Claire’s identified over 1,100 U.S. stores for possible closing and warned it may be forced to liquidate if efforts to sell the chain’s assets fall short. The chain also said it retained Hilco Merchant Services to lead store closing sales “in the event a going-concern transaction is not achievable.”

Of its more than 2,750 stores across North America and Europe, Claire’s has 26 locations in New Jersey. The list of New Jersey stores that will possible close includes almost all of them:

• American Dream
• Bergen Town Center
• Bridgewater Commons
• Brunswick Square
• Cherry Hill Mall
• Cumberland Mall
• Freehold Raceway Mall
• Gloucester Premium Outlets
• Hamilton Mall
• Jersey Shore Premium Outlets
• Livingston Mall
• Menlo Park Mall
• Mills at Jersey Gardens
• Moorestown Mall
• Newport Centre
• Quaker Bridge Mall
• River Front Center
• Rockaway Town Square
• Downtown Westfield
• Westfield Garden State Plaza
• Willowbrook Mall
• Woodbridge Center

Claire’s-owned Icing stores at Deptford Mall, Menlo Park Mall and Ocean County Mall are also included.

In a filing with the New Jersey Department of Labor & Workforce Development, the company said it could eliminate 155 jobs across the state by Nov. 3.

Initially, Claire’s said its stores in North America would remain open as the company explores “strategic alternatives.”

Tariff pressures

Given the chain’s heavy reliance on China for merchandise, potential pressure from the Trump administration’s tariffs has raised questions as to whether the chain will be able to address a nearly $500 million loan due in December 2026. In May, the company chose to defer interest payments on that debt to conserve cash. It also elected to miss June and July rent payments on some stores, sources familiar with the situation told Bloomberg.

Founded in 1961, Claire’s is geared toward teens and tweens. Along with accessories like bracelets, hair clips, necklaces, purses and soft toys, the chain is known for offering ear piercing services.

Next steps

The chain said it will seek court approval for the consensual use of cash collateral to ensure it has the liquidity necessary to support operations and continue paying employees.

In a statement, Claire’s CEO Chris Cramer said, “This decision is difficult, but a necessary one. Increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire’s and its stakeholders. We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”

Cramer continued, “I’d like to express my gratitude for our employees, who have continued to work diligently in a constantly evolving consumer landscape to deliver amazing products and experiences for our customers. We remain committed to serving our customers and partnering with our vendors and landlords in other regions during this time.”

Following its first bankruptcy in 2018, former creditors including Elliott Management Corp. and Monarch Alternative Capital acquired Claire’s. At the time, the chain had over 4,500 shops.

The retailer tried to go public for a second time in late 2021, but withdrew its IPO plans two years later. Its first failed attempt to list occurred in 2013, according to Chain Store Age.

Editor’s note: This story was updated at 10:27 a.m. EST Aug. 7, 2025, to include information about store closures and job eliminations.