{"id":88134,"date":"2025-08-07T01:10:35","date_gmt":"2025-08-07T01:10:35","guid":{"rendered":"https:\/\/sotnews.agency\/?p=88134"},"modified":"2025-08-07T01:10:35","modified_gmt":"2025-08-07T01:10:35","slug":"claires-files-for-bankruptcy-as-competition-bites","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=88134","title":{"rendered":"Claire\u2019s files for bankruptcy as competition bites"},"content":{"rendered":"
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Fashion accessories chain Claire\u2019s has filed for bankruptcy in the US for the second time as it struggles with fewer people buying its products, and online competition eating into profits.<\/p>\n

It confirmed it had already been in discussions \u201cwith other partners\u201d about its future. The BBC understands there will be no immediate impact on the firm\u2019s UK stores.<\/p>\n

The US-based firm said it was in discussion \u201cwith our vendors and landlords\u201d about its North American stores, but shops there would remain open while it explored \u201calternatives\u201d.<\/p>\n

The US-based firm first filed for bankruptcy in 2018. It currently operates 2,750 stores in 17 countries throughout North America and Europe.<\/p>\n

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It has about 280 stores in the UK, down from 370 in 2018 when it filed for bankruptcy because it was unable to repay a loan.<\/p>\n

Claire\u2019s is known for selling jewellery, colourful accessories such as necklaces and bracelets, and is part of millions of young people\u2019s memories for its ear piercing services.<\/p>\n

The firm operates under two brand names, Claire\u2019s and Icing, and is the latest casualty of consumers shifting away from physical stores.<\/p>\n

Claire\u2019s is owned by a group of firms, including investment giant Elliott Management.<\/p>\n

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\u201cThis decision is difficult,\u201d wrote Claire\u2019s chief executive Chris Cramer, \u201cbut a necessary one\u201d.<\/p>\n

He blamed \u201cincreased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail\u201d for the declaration of bankruptcy, as well as \u201cdebt obligations\u201d and wider economic turmoil.<\/p>\n

The firm\u2019s global supply chain means it is likely to suffer as a result of tariffs imposed on goods, part of US President Trump\u2019s escalating trade war with several countries, including China and Canada.<\/p>\n

The company has a $500m (\u00a3375m) loan due in December next year, said Julie Palmer, partner at Begbies Traynor, which would be \u201clooming heavily over management\u2019s minds\u201d.<\/p>\n

Tariffs \u201chave added to the strain\u201d, she said.<\/p>\n

According to retail analyst Catherine Shuttleworth, it is \u201cfair to assume they\u2019re exposed to the same pressures many accessories retailers are.<\/p>\n

\u201cA lot of that category is sourced from Asia, and any increase in import costs hits hard when your price points are low and margins are tight,\u201d she added.<\/p>\n

Mr Cramer said the firm remained in active discussions with potential \u201cstrategic and financial partners\u201d, which did not exclude the possibility that it was still looking for a buyer.<\/p>\n

\u2018Cheap to super-cheap\u2019<\/h2>\n

The Claire\u2019s bankruptcy was a \u201cclear signal\u201d that some parts of retail across the world were \u201cfailing to keep up with how people want to shop right now\u201d, said Ms Shuttleworth.<\/p>\n

She said young people didn\u2019t just browse on the High Street for cheap accessories like they used to, with online competitors such as Shein targeting young shoppers with \u201csuper cheap\u201d accessories.<\/p>\n

Younger people were now \u201cfar more likely\u201d to discover new brands through TikTok than in a shopping centre \u2013 and with footfall still well below pre-Covid levels, it had hit Claire\u2019s very hard.<\/p>\n

Ms Palmer said Claire\u2019s \u201creliance on physical stores \u2013 once a key strength \u2013 has become a major liability\u201d.<\/p>\n

Outside of its European and American stores, Claire\u2019s says it has a further 300 franchised stores located primarily in the Middle East and South Africa. It also sells its products in thousands of concession stores in Europe and the US.<\/p>\n

Its lavender-hued storefronts attracted young people, particularly in the 1990s and early 2000s, who rifled through its neon and glitter accessories racks for good-value buys. It was often a usual stop for a Saturday shopping trip by families and tweens at malls across the world.<\/p>\n

It also occasionally makes a foray into selling toys, including slime, headphones or fluffy toys.<\/p>\n<\/div>\n

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