Retail store Claire’s files for bankruptcy

Claire’s Holdings LLC has filed for bankruptcy protection in the U.S. and says it will soon initiate similar proceedings in Canada.

The accessories and cosmetics retailer plans to submit a filing with the Ontario Superior Court under the Companies' Creditors Arrangement Act (CCAA) in the coming days.

Despite the legal proceedings, Claire’s stores across North America will remain open, as the company enters a restructuring process aimed at monetizing assets and evaluating strategic options for the future of the business.

CEO Chris Cramer described the decision to seek creditor protection as “difficult but necessary,” citing rising competition, shifting consumer spending habits, and the ongoing decline of brick-and-mortar retail as key factors behind the move.

Claire’s, a long-time fixture in malls and shopping centers, was founded in 1974 and now operates more than 2,750 stores in 17 countries across North America and Europe. The brand is well known for its affordable jewelry, cosmetics, accessories geared toward girls and teens, and its popular ear-piercing services.