Claire's Files Second Bankruptcy in a Decade Amid 26 NJ Locations

The Struggles of Claire’s: A Second Bankruptcy in a Decade

Claire’s, the well-known retail chain that caters to tweens and teens with jewelry, piercings, fashion, and accessories, has once again filed for bankruptcy. This marks the second time in less than a decade that the company has sought financial protection, signaling ongoing challenges in its business model.

The 64-year-old brand, which is commonly found in malls across New Jersey and the United States, filed for Chapter 11 bankruptcy protection in Delaware federal court on August 6. According to CEO Chris Cramer, the decision was driven by factors such as increased competition, shifting consumer spending habits, and the continued decline of traditional brick-and-mortar retail stores.

The company had a $496 million loan due in December 2026, and some of its unprofitable stores failed to meet rent obligations. These financial strains have contributed to the company's current predicament. In 2018, Claire’s first filed for bankruptcy, which allowed it to eliminate $1.9 billion in debt and eventually led to its takeover by creditors Elliott Management Corp. and Monarch Alternative Capital.

Despite these challenges, Claire’s has stated that its North American stores will remain open while it explores various strategic alternatives, including the possibility of selling the company. The brand currently operates 2,750 stores across North America and Europe, including 26 locations in New Jersey.

According to bankruptcy filings, Claire’s reported having between $1 billion and $10 billion in debt, along with significant assets. The company also listed between 25,001 and 50,000 creditors. One major issue has been the reliance on foreign suppliers for inventory. Between November 2024 and April 2025, 70% of its inventory came from outside the U.S., primarily from mainland China, as well as Vietnam, Thailand, Cambodia, Bangladesh, Taiwan, and India.

This dependency on international supply chains has become problematic, especially given the fluctuating tariffs imposed by former President Donald Trump on foreign imports. These tariffs have disrupted global supply chains and potentially led to higher prices for consumers.

Neil Saunders, a retail analyst and managing director at GlobalData, noted that Claire’s has struggled with high debt levels and difficulties in maintaining daily operations. The rise of online retailers like Amazon, as well as in-person competitors such as Lovisa, has intensified competition. These companies offer younger shoppers a more sophisticated range of products at competitive prices. Additionally, some Claire’s locations have seen declining sales due to reduced foot traffic in malls, raising concerns about potential store closures.

Claire’s Stores in New Jersey

Here are the 26 Claire’s locations in New Jersey:

• American Dream, East Rutherford
• Bergen Town Center, Paramus
• Bridgewater Commons, Bridgewater
• Brunswick Square, East Brunswick
• Cherry Hill Mall, Cherry Hill
• Cumberland Mall, Vineland
• Deptford Mall, Deptford
• Freehold Raceway, Freehold
• Garden State Plaza, Paramus
• Hamilton Mall, Mays Landing
• Jersey Gardens, Elizabeth
• Jersey Shore Premium Outlet, Tinton Falls
• Livingston Mall, Livingston
• Menlo Park Mall, Edison
• Moorestown Mall, Moorestown
• Newport Centre, Jersey City
• Ocean County Mall, Toms River
• Paramus Park, Paramus
• Quaker Bridge Mall, Lawrence Township
• River Front Center, Clifton
• Rockaway Townsquare, Wayne
• Tanger Gloucester Premium Outlets, Blackwood
• Walmart, Deptford
• East Broad Street, Westfield
• Woodbridge Center, Woodbridge
• Willowbrook Mall, Wayne

Understanding Chapter 11 Bankruptcy

Chapter 11 bankruptcy does not automatically mean a company will fail. It is a process that allows businesses to reorganize their debts and continue operating. During this process, a company typically proposes a plan to restructure its finances and pay off creditors over time.

Claire’s is not alone in facing these challenges. Many other brick-and-mortar retailers have either closed or significantly reduced their operations in recent years. Examples include At Home, Stop & Shop, Big Lots, buybuy Baby, Family Dollar, Rite Aid, CVS, Bed Bath & Beyond, and Christmas Tree Shops.

Additionally, Forever 21, which has 15 stores in New Jersey, declared bankruptcy in April and announced plans to close all of its locations.

Claire’s continued struggles highlight the broader challenges faced by traditional retail in an increasingly digital and competitive market. As the company navigates its second bankruptcy in a decade, its future remains uncertain, but the path forward may involve strategic changes and a renewed focus on adapting to evolving consumer preferences.