Wed, 06 Aug 2025

Wed, 06 Aug 2025 Claire's files for bankruptcy as competition bites

The colourful accessories chain says sales are down as online competitors and higher costs eat into profits.

* Claire's has filed for bankruptcy in the US for the second time due to increased competition, shifting consumer spending trends, and a decline in physical retail sales.
* The company operates 2,750 stores in 17 countries, including 280 in the UK, which will not be affected by the bankruptcy filing.
* Claire's is struggling with online competition, tariffs imposed on goods from countries such as China and Canada, and debt obligations, including a $500m loan due in December next year.
* The company's global supply chain has been impacted by tariffs, which have added to its financial strain.
* Retail analysts believe that Claire's reliance on physical stores is now a major liability, as consumers increasingly shop online and discover new brands through social media platforms like TikTok.
* The bankruptcy filing highlights the struggles of retailers in adapting to changing consumer behavior and increasing competition from online retailers.
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