Retailer Claire's Files Bankruptcy; Millennials Are Reeling

Earlier today, Claire’s, our most nostalgic accessories retailer, declared bankruptcy.

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

Now where will tweens gather after grabbing an Auntie Anne’s pretzel and Orange Julius?!

Truly, between the ages of 9 and 14, no mall trip felt really complete without perusing the displays of baubles and bangles available at Claire’s. And whom among us didn’t get their prom jewelry from the wall of oh-so-glamorous rhinestone offerings? For many women, and especially Millennial women, Claire’s is one of thee brands we associate with those tender years.

Fortunately for young shoppers, and, indeed, anyone who’s spontaneously felt like getting their ears pierced while strolling through the mall, this move was done in the hopes of saving retail locations. In getting out from under its nearly $500 million in debt, the 64-year-old company intends to seek approval to use liquid collateral to continue to support its operations.

“I'd like to express my gratitude for our employees, who have continued to work diligently in a constantly evolving consumer landscape to deliver amazing products and experiences for our customers,” Cramer concluded in Claire’s statement. “We remain committed to serving our customers and partnering with our vendors and landlords in other regions during this time.”

Claire’s difficulties, however, remain. Increased competition over the years — including from online retailers — the decline of shopping malls, and steeper tariffs on supplier countries (mainly China, Cambodia and Indonesia per reporting from The Washington Post) will continue to prove challenges moving forward.

This is the second time the company has declared bankruptcy. Claire’s filed Chapter 11 in 2018, again, due to debt. (Almost $2 billion... that’s a lot of Hello Kitty scrunchies...) At the time, the company boasted more than 4,500 locations. Today, according to CNN, it hovers around 2,750 (including Icing locations) globally.