Claire’s Seeks Bankruptcy Relief in the United States

Claire’s files for bankruptcy. The teenage accessory company has filed for bankruptcy protection in the U.S., its second bankruptcy filing in the country since 2018. At that time, the company’s owner, Apollo Global Management, transferred the asset to creditors, which included Elliott Management and Monarch Alternative Capital.

The U.S. company is filing for bankruptcy due to a cocktail of circumstances: a $477 million debt maturing in December 2026, falling consumption in the United States and, above all, rising costs resulting from the growth of tariffs imposed by the United States on China, the main sourcing market for Claire’s.

Through a court document, Claire’s highlighted a slowdown in consumer spending, leading to lower sales. The U.S.-based company listed its assets and liabilities estimated at between $1 billion and $10 billion each in a filing with the U.S. bankruptcy court in Delaware.

Claire’s also says goodbye to UK and France

Since 2018, Claire’s has been going through difficulties that it has not been able to resolve. With the announcement of the sale of its UK store network, the Hilco Capital group, an investor in retail companies such as Superdry, submitted a formal bid for the British business.

France is another of the markets where Claire’s will cease to operate. The Paris commercial court last month declared the company in redressement judiciare (equivalent to Chapter11).

The company has a network of 2,750 stores in seventeen countries, as well as a presence in department stores in the United States and Europe and a network of more than 300 franchises in the Middle East and South Africa.

Founded in 1974, the company defines itself as a shopping destination for jewelry, cosmetics, accessories and piercing for girls and teens between the ages of 3 and 18. In addition to the Claire’s chain, the company owns Icing, which targets an older audience.