For many teens and tweens, a trip to Claire’s was practically a rite of passage — ear piercings, sparkly scrunchies, and plastic jewelry packed every inch of its tiny mall stores.
But now, the beloved brand is looking for a buyer, and that could mark a turning point for one of America’s most iconic mall fixtures.
From Mall Staple to Financial Struggles
Claire’s has officially started shopping around for someone to take over — either in full or in part — as it struggles under the weight of rising costs and nearly half a billion dollars in debt.
According to Bloomberg, the sale could include all 1,300 stores in the U.S., as well as 1,450 international branches.
Behind the scenes, a restructuring team is already working with the company as it tries to stabilize.
And despite rumors, Claire’s stores will reportedly stay open during the process.
A Company Squeezed by Debt and Delayed Payments
The financial picture isn’t pretty. Claire’s has around $500 million in loans that come due by the end of 2026.
Just last month, the company skipped scheduled interest payments in a move to conserve cash — a clear sign that things are getting tight.
This isn’t the first time the brand has stared down financial disaster.
Claire’s filed for bankruptcy back in 2018 but managed to bounce back within seven months after shedding nearly $1.9 billion in debt.
Glitter and Glam Come With a Price Tag
Claire’s has long built its empire on affordability — offering earrings, necklaces, and fashion trinkets for under $10.
But keeping prices that low often means relying on cheap imports from China.
With tariffs on Chinese-made products currently sitting at 30%, that’s been a big hit to the brand’s margins.
And it might get worse. A 90-day pause on higher tariffs is set to expire in mid-August, which could drive up prices even more — right as inflation is already squeezing consumers.
Teen Retailers Feel the Pressure
Claire’s isn’t alone. Several mall-based retailers are feeling the heat in 2025.
Torrid recently announced plans to shut down 180 stores.
Forever 21, another staple of low-cost youth fashion, filed for bankruptcy in February and is closing all its retail locations. JCPenney is continuing to shrink its footprint.
Even Guess, once a fashion heavyweight, is considering private equity offers to go private.
The retail environment is a tough one — marked by shaky consumer confidence, rising interest rates, and expensive international trade policies.
Sales Still Strong, But the Future’s Unclear
Despite all the turbulence, Claire’s did manage to rake in $1.3 billion in sales globally last year. Of that, about $720 million came from North American stores.
But sales alone aren’t enough when expenses and debt are climbing.
Claire’s had high hopes of going public again, especially under the leadership of Ryan Vero, who stepped in as CEO in 2019.
But an attempt at an IPO didn’t pan out, and the company later brought in Chris Cramer as CEO in 2024 to help chart a new path forward.
What’s Next for Claire’s?
For now, Claire’s hasn’t made any public statements about its future or potential buyers.
Customers may not notice much difference in the short term, but long-term decisions could reshape or even redefine the brand.
Whether it’s a new owner, another restructuring, or another swing at the public markets, one thing is clear — Claire’s, once a mall staple, is standing at a crossroads.