Claire’s has filed for its second bankruptcy in seven years. Despite attempts to modernize, the company has not been able to overcome challenges including stiff competition from players like Shein, Temu, and TikTok Shop and increased costs related to tariffs. Watch the video to learn about the rise and fall of long-time American mall favorite Claire’s.Competition with Shein, Temu, and TikTok Shop and tariffs — the first formed a major reason behind Forever 21 filing for bankruptcy and closing all U.S. stores while the second contributed to Joann and At Home filing for bankruptcy. They may have been the first chains that blamed those factors, but they won't be the last. Of course, private equity played a part in the story, but CNBC didn't identify them as the cause of the debt Claire's couldn't pay. I may have to wait until Company Man or Bright Sun Films cover the chain to confirm that. Retail Archaeology? Erik examined the first bankruptcy seven years ago. I'll get to that.
As for what the future holds, the following graphic shows that Claire's is in bad company.
I already mentioned Joann and Forever 21. Add in Party City, Rite Aid, Tuesday Morning, Rue21, and Z Gallerie, and the list becomes a who's who of chains that no longer have physical locations in the U.S. or, in the case of Rite Aid, will soon close them. At least David's Bridal and True Religion Apparel still have stores open, but 20% odds are not good.
Now for a video I should have posted seven years ago, Claire's: BANKRUPTCY! | Dead Mall & Retail Documentary | Retail Archaeology.
In this episode we take a look at Claire's, a retailer that operates in 95% of malls in the United States. In March of 2018 Claire's filed for chapter 11 bankruptcy protection.That was fun, if not all that informative. Still, better late than never.
I expect to see more about Claire's from the usual sources. When I do, I'll post it here. In the meantime, stay tuned for the next installment about Emmy Awards nominees.
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