Claire’s, the 2000s iconic pop culture store from the Tumblr era—the one that witnessed the birth of hipsters and gave us all the Taylor Swift-style glasses it could—has filed for bankruptcy for the second time in seven years.
The growing competitiveness in the sector has led the brand to reconsider its options, and it is now considering closing 1,100 stores in the United States. Currently, it operates a total of 2,750 stores in 17 countries across North America and Europe.
Between 2000 and 2007, Claire’s saw significant growth, with annual sales increasing from $846 million to $1.48 billion. But by 2018, it had filed for its first bankruptcy and was taken over by hedge funds Elliott Management and Monarch Alternative Capital, who wiped out $1.9 billion in debt.
In 2021, the brand saw some renewed momentum through eCommerce and modernization efforts. These included retail partnerships with Walmart and Walgreens, a new loyalty program, and influencer-led content initiatives. However, none of these moves were enough to stop the brand’s overall decline.
In its latest bankruptcy filing, Claire’s cited multiple macroeconomic pressures — including rising interest rates, labor costs, and tariffs — as key challenges. Despite efforts to adapt, the company acknowledged that “it was not enough to overcome the obstacles.”
Claire’s is not alone in this scenario. In the past decade, at least nine other major U.S. retailers — such as Party City, Forever 21, and Rite Aid — have filed for bankruptcy more than once. According to Sarah Foss of Debtwire, many of these companies are now liquidating their physical stores entirely, with only limited online operations continuing.
Claire’s is currently in talks with potential buyers, having reached out to more than 150 interested parties. Several letters of intent have already been received, with a tentative deadline for acquisition set for August 31.
Long gone are the days when shopping at Claire’s for a mustache necklace, mustache earrings, or literally anything with a mustache felt almost like a requirement to stay fashionable. Those were the same days when you would choose to get your first piercing at one of their stores, accompanied by your friends.
Claire’s plays a significant role in the lives of those who are now adults but were once teenagers, just as it still holds meaning for those who cannot imagine going back to school without an accessory from the store.
However… will nostalgia be enough to save Claire’s?
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