This Gen X Mall Staple Is Filing for Bankruptcy (Again)

Gen X and Millennials grew up with mall culture, and Claire's was found in nearly every mall across the country. The iconic store is where teens and tweens went looking for funky, fun accessories, and the ear-piercing mall staple was especially popular during the early 2000s.

Unfortunately, times have changed, and the classic '90s store has filed for bankruptcy — again. This is the second time in seven years, and many fear the store won't survive round two.

The retail landscape is bleak, with Claire's joining the ranks of many other well-known chains facing bankruptcy and closings, including Big Lots, Kohl's, Macy's, JCPenney, Party City, and Joann Fabrics. Learn everything we know right now about Claire's bankruptcy filing and why they find themselves unable to withstand economic downturns.

As CEO Chris Cramer explained in a press release issued on Aug. 6, "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".

In layman's terms, the youth are seeking fashion trends outside of the mall environment. While the company has attempted to find a buyer for the business, according to the press release, the bankruptcy proceeding will allow them to "commence the monetization process for its assets to maximize value for the business, while continuing an active and comprehensive review of strategic alternatives, including discussions with potential strategic partners that began prior to the filings."

Though once a thriving business, today, according to USA Today, the chain has deferred payments on debt interest as a way to conserve cash. Between falling behind on bills and uncertainty regarding Claire's ability to pay a nearly $500 million loan due in December 2026, it's evident that the move away from brick-and-mortar stores and recent tariffs has had a significant impact on the business.

The first time Claire's filed for bankruptcy was in 2018, citing a diminishing consumer demand and increased digital competition. The company was taken over by creditors and was able to eliminate $1.9 billion of debt.

As a result, they were able to exit bankruptcy and then made plans to take the company public. While during the 2018 filing, the chain had more than 4,500 locations globally;ly, today, they sit at about 2,750.

Claire's also operates Icing, another retail store, and the bankruptcy is forcing them to close many locations. Eighteen stores have been announced to close first, and they will have clearance sales ending no later than Sept. 7.

While a majority of stores will remain open for the time being, additional stores may have to close, depending on whether they are able to find a buyer for both brands. Without a buyer, 1,326 locations will be forced to shut down by Oct. 31.

• Montgomery, Alabama: Eastdale Mall
• Newark, California: Newpark Mall
• Chicago, Illinois: Ford City Mall
• Lynnfield, Massachusetts: Market Street
• Bay City, Michigan: Bay City Town Center
• Blaine, Minnesota: Northtown Mall
• Livingston, New Jersey: Livingston Mall,
• Uniontown, Pennsylvania: Uniontown Mall
• Highland Village, Texas: Shops at Highland Village
• Knoxville, Tennessee: Pinnacle at Turkey Creek
• Park City, Utah: Junction Commons
• Provo, Utah: Provo Town Center
• Woodinville, Washington: Woodinville Plaza

The fate of the rest of Claire's locations may still be up in the air, but the initial 18 stores closing are largely part of "dead malls" and will be shuttering anyway, even if a buyer is found. Thirteen of these locations are Claire's branded, while the other five are Icing locations.

• Riverside, California: Galleria at Tyler
• Grand Rapids, Michigan: Woodland Mall
• Rochester, New York: Greece Ridge
• Abilene, Texas: Mall of Abilene
• Orem, Utah: University Orem

Even if another buyer is found for the Claire's brand, it's likely that the Icing brand, which was aimed at the slightly older target age of 20-somethings, will be discontinued.

If a Claire's near you is closing, it's a great time to check out the liquidation sales — and don't forget to use your best cash back credit cards to maximize the savings.

It does not appear likely that a buyer will emerge before the deadlines; however, if one does, then Claire's retains the ability to stop the closings. And even if your Claire's isn't on the list yet, it's possible that they, too, will soon have clearance and liquidation sales as part of the bankruptcy dealings.