In a significant blow to the mall retail landscape, Claire’s, the popular teen jewelry and accessories chain known for its iconic ear-piercing stations, has filed for Chapter 11 bankruptcy for the second time in just seven years. The announcement, made on August 6, 2025, by Claire’s Holdings LLC, comes with confirmation of a claire’s closing plan for 18 of its U.S. and Icing stores. While the majority of Claire’s 1,326 locations will remain open, the closures highlight the brand’s ongoing struggle in an increasingly competitive retail market.
Why Claire’s Is Struggling — Again
Claire’s first entered bankruptcy in March 2018, emerging with reduced debt and renewed optimism. However, recent years have not been kind to the retailer. Competition from ultra-fast fashion giants like Shein and Temu has significantly eroded sales. Additionally, rising interest rates, inflation, and U.S. tariffs on goods from China have added financial pressure.
The company had been searching for a potential buyer to acquire all or part of the business before the bankruptcy filing. But, as CEO Chris Cramer explained, the claire’s closing strategy for select stores was “a difficult but necessary decision” in the face of shifting consumer behavior and mounting debt.
Signs of Financial Trouble
Earlier in 2025, Claire’s deferred debt interest payments to conserve cash. Bloomberg reports indicated concerns over the retailer’s ability to meet a $475 million loan due in December 2026. Moreover, credit data from Creditsafe revealed that Claire’s had increasingly fallen behind on bill payments over the past year — a red flag for cash flow issues.
Which Stores Are Closing?
According to court filings, clearance sales at the affected locations will end no later than September 7, 2025. While the claire’s closing list includes both Claire’s and Icing stores, more closures could follow depending on the company’s financial restructuring progress.
Claire’s Stores closing (13):
- Eastdale Mall, Montgomery, Alabama
- Newpark Mall, Newark, California
- Ford City Mall, Chicago, Illinois
- Market Street, Lynnfield, Massachusetts
- Bay City Town Center, Bay City, Michigan
- Northtown Mall, Blaine, Minnesota
- Livingston Mall, Livingston, New Jersey
- Uniontown Mall, Uniontown, Pennsylvania
- Shops at Highland Village, Highland Village, Texas
- Pinnacle at Turkey Creek, Knoxville, Tennessee
- Junction Commons, Park City, Utah
- Provo Town Center, Provo, Utah
- Woodinville Plaza, Woodinville, Washington
Icing Stores closing (5):
- Galleria at Tyler, Riverside, California
- Woodland Mall, Grand Rapids, Michigan
- Greece Ridge, Rochester, New York
- Mall of Abilene, Abilene, Texas
- University Orem, Orem, Utah
What’s Next for Claire’s?
Despite the claire’s closing announcement, the company insists it remains committed to its brand and customers. Management is exploring “strategic alternatives” and is in active discussions with potential partners who could inject fresh capital or provide operational support. For now, the focus is on stabilizing finances while keeping most stores operational to maintain customer loyalty.
Still, the closures are part of a broader trend in the U.S. retail sector, where traditional mall-based stores are grappling with declining foot traffic and the rapid growth of e-commerce. Companies like Macy’s, Party City, and JCPenney have also faced downsizing in recent years — signaling a challenging era for legacy brick-and-mortar brands.
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