California, September 1, 2025
News Summary
Claire’s, the popular teen accessories chain, is set to close nearly 300 stores across the U.S., including 25 in California, following its second Chapter 11 bankruptcy filing. Reasons for the closures include heightened competition and changing consumer preferences that favor online shopping. CEO Chris Cramer highlighted financial pressures due to a significant debt load, including a looming $500 million loan. Liquidation sales are underway, with final closures expected by September 2025. This announcement reflects ongoing challenges faced by traditional retailers in the current economic landscape.
California: Claire’s to Shut Down Nearly 300 Stores Amid Second Bankruptcy Filing
Claire’s, the well-known teen accessories chain, has announced that it will close nearly 300 stores across the United States, including 25 locations in California. This decision comes shortly after the company’s Chapter 11 bankruptcy filing earlier this month, marking its second such filing since 2018.
CEO Chris Cramer identified several significant factors behind the store closures. Increased competition, shifts in consumer spending habits, and the ongoing decline of brick-and-mortar retail have all contributed to the brand’s struggles. Furthermore, Claire’s faces financial pressure from a substantial debt load, which includes a $500 million loan that is due by December 2023.
The planned closures will affect a total of 291 locations nationwide. In California, the affected stores include those in Barstow, Buena Park, Chula Vista, Citrus Heights, City of Commerce, El Centro, Emeryville, Lake Arrowhead, La Mesa, Long Beach, Murrieta, Newport Beach, Novato, Oxnard, Rancho Cordova, Rancho Santa Margarita, Sacramento, San Dimas, San Jose, Tulare, and Tustin. The company will also close 56 Icing stores, a sister brand, with locations in Culver City, Lakewood, and Palmdale among those impacted.
As part of the closure process, a liquidation sale has already commenced at the Emeryville outlet, offering discounts of up to 80% on merchandise. Sales will continue at most other Claire’s stores until their final shutdown, expected to be completed by September 7, 2025.
Founded in 1961 as a wig store, Claire’s transitioned into accessories and ear-piercing services in 1978. The brand claims to have pierced the ears of over 100 million customers since its inception. Today, Claire’s operates more than 2,750 locations across 17 countries, including those in North America and Europe.
The decline of Claire’s is reflective of a broader trend affecting traditional mall retailers who are grappling with the rise of online shopping platforms like Shein and Temu. As consumer preferences shift toward online options, many brick-and-mortar stores have faced challenges in maintaining sales and foot traffic. Claire’s documented difficulties follow a previous bankruptcy restructuring in 2018, which involved restructuring $1.9 billion in debt while acquiring $575 million in new capital.
Despite the store closures, Claire’s is exploring strategic alternatives in hopes of overcoming these challenges and rebounding as a business. The difficulties facing Claire’s are not isolated, as reported instances of bankruptcy filings from other mall-centric brands, such as Forever 21 and Foot Locker, illustrate a growing concern about the viability of traditional retail models in the contemporary economy.
Key Points
- Claire’s to close nearly 300 stores, 25 in California.
- Filed for Chapter 11 bankruptcy protection earlier this month.
- CEO cites increased competition and changing consumer habits as reasons for closures.
- Significant debt accumulation, including a $500 million loan due by December 2023.
- Liquidation sales already occurring, with complete store shutdown by September 7, 2025.
Frequently Asked Questions (FAQ)
Why is Claire’s closing nearly 300 stores?
Claire’s is closing stores primarily due to increased competition, changing consumer spending habits, and a decline in brick-and-mortar retail. The company also has significant debt issues.
How many stores in California are affected by the closure?
A total of 25 Claire’s stores in California will be shutting down.
What types of sales are occurring during the liquidation process?
Liquidation sales are in effect, with discounts of up to 80% on merchandise.
When is the final shutdown of the affected stores expected?
The store closures are expected to be completed by September 7, 2025.
What is the history of Claire’s?
Claire’s started as a wig store in 1961 and expanded into accessories and ear-piercing services in 1978. The company claims to have pierced over 100 million ears since then.
Key Features
| Feature | Details |
|---|---|
| Store Closures | 291 locations nationwide, including 25 in California |
| Bankruptcy Filing | Chapter 11 filed in October 2023 |
| Debt Situation | $500 million loan due by December 2023 |
| Liquidation Sales | Discounts of 70-80% at select locations |
| Company Foundation | Founded in 1961, transitioned to accessories in 1978 |
Deeper Dive: News & Info About This Topic
- ABC10
- USA Today
- Los Angeles Times
- Business Insider
- Fast Company
- Wikipedia: Claire’s
- Google Search: Claire’s bankruptcy news
- Google Scholar: Claire’s bankruptcy
- Encyclopedia Britannica: Claire’s
- Google News: Claire’s store closings
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