Company Man asks 'The Decline of Claire's...What Happened?' A tale of the Retail Apocalypse

I had a scientific video planned for today's evergreen educational post, but that was before I saw Company Man asking The Decline of Claire's...What Happened?

The iconic mall-based retailer has filed for bankruptcy. This video explores the history of Claire's while outlining what I believe to be five of the biggest reasons behind its decline.

I anticipated this video in CNBC asks 'Can Claire's Survive Its Second Bankruptcy?' A tale of the Retail Apocalypse and tariffs.

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.

Here is Company Man Mike's list.


Number one, leveraged buyout. That's a tactic private equity uses, so good enough for me. That written, private equity looks to be the savior of the chain, at least for now.

Company Man rolled tariffs into economic factors, along with the Great Recession and the pandemic. Those were on top of declining mall traffic (and fewer malls) and competition with Shein and Temu but also Lovisa and Five Below, two chains I haven't mentioned here before. At least Amazon wasn't blamed!

Company Man added one thing that I didn't already know or suspect, brand perception. That was an issue for different reasons with Hooters, so I shouldn't be surprised.

That's a wrap for the Retail Apocalypse today. I might return to Claire's should Bright Sun Films produce a video. In the meantime, stay tuned for the 20th anniversary of Hurricane Katrina.