An Iconic Mall Staple Just Filed For Bankruptcy And The Reason Is Clear

Claire's holds a place in a lot of teens and tweens' hearts, as well as nostalgic adults, as a quintessential mall touchstone. However, to the heartbreak of many, the jewelry chain and piercing outlet is once again going through bankruptcy proceedings. As of August 2025, the company filed its second bankruptcy in seven years. In a news release, Claire's announced that, in an effort to bolster the value of the company, it had voluntarily filed for Chapter 11.

Chris Cramer, CEO of Claire's, included a statement in the release that the decision, while hard to make, was a necessary one to secure Claire's Holdings LLC's future. "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," explained Cramer. Claire's is just one of several major retailers that have shut down stores across the United States.

Claire's is not alone in facing tough financial challenges. Victoria's Secret is closing more stores in 2025, further signaling that mall retailers are in trouble. Reuters reported that Claire's is $690 million in debt as it struggles to keep up with fast fashion online retailers like SHEIN. The chain, which currently has 1,326 jewelry stores nationwide, has taken a hit in the last few years as competitors lowered prices. Additionally, inflation and interest rates have increased while U.S. imposed tariffs on countries like China and Vietnam have caused an increase in prices for many of the imported goods that Claire's relies on to stock its shelves.

Per the New York Post Claire's assets and liabilities are estimated to each fall in the range of $1 billion to $10 billion. The filing also indicates that Claire's will close down 18 initial locations as part of its liquidation agreement — although more closings could occur by the end of October 2025, if the company has not found a buyer by then.

Many popular retail chains are facing financial ruin in 2025. In addition to economic factors, brick-and-mortar stores have also faced steep competition from online retailers like Amazon. According to a 2025 study from fashion brand Selfie Leslie, per Newsweek, in-person shopping at a physical location decreased 62% in the U.S. between 2015 and 2025, while online shopping skyrocketed 111% during the same time. The COVID-19 pandemic only helped to accelerate this online shopping trend.

2025 Capital One Shopping data highlighted that, out of the 1,200 malls located across the U.S., less than 900 are projected to still be operating by 2028. Plus, if trends from 2024 are any indicator, over the next 10 years 87% of large shopping malls could shutter their doors. Q4 2024 numbers showed that the vacancy rate among American malls was 248% higher than the overall average retail vacancy rate. If that trend continues, it's not just Claire's, but even the malls that house them, which could be extinct in the next decade.