Claire’s, the US-based fashion accessories retailer known for its ear-piercing services and presence in shopping centres worldwide, has filed for bankruptcy in the United States for the second time in seven years.

The company, which operates more than 2,700 stores across 17 countries, cited rising competition, a shift in consumer spending, and mounting debt as key factors behind the decision.

The bankruptcy filing, made in the US Bankruptcy Court in Delaware, revealed liabilities of between $1 billion and $10 billion. Claire’s has also initiated proceedings in Canada under the Companies’ Creditors Arrangement Act. The company stated that its North American stores will remain open while it explores “all strategic alternatives,” including the possibility of a sale or partnership.

Chris Cramer, chief executive officer of Claire’s, said, “This decision is difficult, but a necessary one. 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 retailer, which is owned by Elliott Management and Monarch Alternative Capital following a previous restructuring, has been particularly affected by the rise of online competitors such as Shein and Amazon, as well as declining footfall in traditional shopping locations. The company’s global supply chain, heavily reliant on imports from Asia, has also been hit by new tariffs imposed under US President Donald Trump’s trade policy, raising questions about Claire’s ability to manage a $500 million loan due in December 2026.

In the UK, where Claire’s operates around 280 stores, the company has appointed Interpath Advisory to explore options for its future, including a potential sale or insolvency process. Prospective buyers have reportedly been deterred by the scale of the retailer’s challenges, with one industry executive suggesting that as many as a third of its UK outlets could be closed as part of any rescue deal.

Claire’s said it remains in active discussions with potential strategic and financial partners, and is committed to completing its review of alternatives. The company emphasised that its stores will continue to serve customers in-store and online throughout the bankruptcy process.

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