After years of surviving a shifting retail landscape, Claire files for bankruptcy once again under Chapter 11, revealing deep financial trouble that’s forcing the closure of 18 store locations nationwide. Known for its ear-piercing kiosks and teen-friendly accessories, Claire’s is feeling the heat of an increasingly digital and discount-driven market, with unpaid rent and mounting debt now too large to ignore.
This is not the first time Claire’s has found itself in crisis. Back in 2018, the brand filed for bankruptcy but managed to bounce back. However, with changing shopping habits, declining mall traffic, and rising operational costs, the retailer now faces an even more uncertain future. Claire’s unpaid rent and decreasing footfall in malls have contributed significantly to its decision to file for Chapter 11 bankruptcy protection.
What Led to Claire’s Chapter 11 Bankruptcy This Time?
The decision to file for bankruptcy stems from a perfect storm of issues. For starters, Claire’s unpaid rent has accumulated over the past year, reportedly reaching millions in arrears across various mall-based locations. The retailer’s dependence on in-person shopping and mall traffic, a model that’s been rapidly deteriorating in the post-pandemic economy, has left the company vulnerable.
Increased competition from fast fashion retailers and online giants like Shein and Amazon has also cut deep into Claire’s customer base. Teenagers and tweens, once the brand’s most loyal demographic, are now more inclined to shop online or opt for trendier, more affordable alternatives. In court filings, Claire’s stated that despite efforts to renegotiate leases and reduce costs, it was unable to achieve financial stability without restructuring.
Claire’s Closing Stores: Full List of 18 Locations
As part of its restructuring plan, Claire’s will shut down 18 underperforming stores across the U.S. This move is intended to streamline operations and reduce overhead as the company navigates its bankruptcy process. Below is the list of locations that will be closing their doors:
- Mall of America – Bloomington, MN
- SouthPark Mall – Charlotte, NC
- The Galleria – Houston, TX
- King of Prussia Mall – King of Prussia, PA
- Aventura Mall – Aventura, FL
- Woodfield Mall – Schaumburg, IL
- Tysons Corner Center – McLean, VA
- Westfield San Francisco Centre – San Francisco, CA
- NorthPark Center – Dallas, TX
- Roosevelt Field – Garden City, NY
- Somerset Collection – Troy, MI
- Fashion Valley – San Diego, CA
- Cherry Creek Shopping Center – Denver, CO
- Ala Moana Center – Honolulu, HI
- The Domain – Austin, TX
- Lenox Square – Atlanta, GA
- Kenwood Towne Centre – Cincinnati, OH
- Glendale Galleria – Glendale, CA
The closures are expected to be completed by the end of the fourth quarter of 2025, as Claire’s attempts to stabilize its operations and possibly attract new investment.
Claire’s Retailer Collapse: Another Sign of a Bigger Trend
Claire’s retailer collapse isn’t an isolated event. The broader retail industry has seen a wave of closures and bankruptcy filings in 2025 alone. Macy’s, Kohl’s, and even long-standing department store brands like Belk have either downsized their store counts or filed for Chapter 11 bankruptcy to restructure mounting debt.
Retail chains heavily reliant on mall traffic are the ones suffering the most. As e-commerce continues to grow, traditional brick-and-mortar stores are struggling to adapt. Claire’s chapter 11 bankruptcy highlights the growing pressure on retailers to either pivot to digital platforms or risk becoming obsolete.
What’s Next for Claire’s?
While the current situation seems dire, Claire’s still plans to operate hundreds of stores and maintain its online presence during the bankruptcy process. The company hopes that shedding some of its most costly leases and restructuring its debts will allow it to reinvent itself for a new generation of shoppers.
Still, the path forward won’t be easy. Consumer trust, brand relevance, and financial stability must be rebuilt. Claire’s will need to modernize its offerings and focus on digital engagement if it hopes to remain a staple for young fashion-forward shoppers. Despite the setback, Claire’s executives remain cautiously optimistic. In a statement, the company emphasized its commitment to continuing operations and supporting employees affected by the closures.
Claire’s Next Chapter: Survival or Shutdown?
As Claire’s files for bankruptcy for the second time in less than a decade, it’s clear the challenges facing mall-based retailers are far from over. With Claire’s closing stores and grappling with millions in unpaid rent, the brand joins a growing list of once-thriving companies now fighting for survival.
Whether this latest restructuring will be enough to save Claire’s remains to be seen. One thing is certain: the retail landscape is evolving fast, and only the most adaptable will make it out alive.
