By Jordan Valinsky, CNN

New York (CNN) — Claire’s, a mall staple that attracts pre-teens for its bargain jewelry and accessories, has filed for its second bankruptcy in less than a decade.

The retailer, which filed for Chapter 11 bankruptcy protection in a federal court in Delaware Wednesday, has been dealing with several problems in recent years including competition from online rivals, mounting debt and the uncertainty from tariffs.

“This decision is difficult, but a necessary one,” said Claire’s CEO Chris Cramer in a statement. “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.”

The stores in North America will remain open while it “continues to explore all strategic alternatives,” including a possible sale.

Like other retailers, Claire’s is heavily dependent on importing its cheap goods from China, Cambodia and other Asian countries, which the Trump administration has hit hard with a patchwork of tariffs and other aggressive trade policies.

Claire’s has a $496 million loan due in December 2026 and it has stopped paying both interest rent payments on unprofitable stores, according to Debtwire.

The bankruptcy is “no surprise,” said Neil Saunders, managing director of GlobalData, saying that Claire’s has been suffering with a “cocktail of problems, both internal and external, that made it impossible to stay afloat.”

“Claire’s has struggled to simultaneously manage its debts and service day-to-day operations,” Saunders said. “The prospects of it being able to pay loans as they become due are extremely slim.”

The 64-year-old retailer hasn’t kept up with the competition, which “has also become sharper and more intense over recent years,” he said, which is “more attuned to what younger consumers want and has left Claire’s looking somewhat out of step with modern demand.”

Claire’s first filed for bankruptcy in 2018, when it had more than 4,500 stores globally. It now has about 2,750 locations, including its Icing spinoff, spanning 17 countries.

It’s the latest retailer to file for bankruptcy this year. Forever 21, At Home and Quicksilver-owner Liberated Brands also filed for bankruptcy in 2025.

The-CNN-Wire
™ & © 2025 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.