"Behind its glittery facade, Claire's is a financial mess. The tween retail icon behind millions of ear piercings and Y2K accessories filed for bankruptcy in August 2025, closing hundreds of stores and selling its North American business for just $104 million. So how does a brand with $1.4 billion in global sales end up with more than $500 million in debt?"
"Fast Company staff writer Elizabeth Segran has been covering the company's ups and downs for years. In this episode of FC Explains, she breaks down the full Claire's story, from its mall-era dominance and surprising pandemic comeback to its failed IPO, crushing debt load, tariff difficulties, and the rise of sleeker competitors like Lovisa, Studs, and Rowan. The preferred-rate deadline for Fast Company's Best Workplaces for Innovators Awards is Friday, February 20, at 11:59 p.m. PT. Apply today."
Claire's evolved from a mall-era dominant tween retailer into a company facing severe financial distress. The company filed for bankruptcy in August 2025, closed hundreds of stores, and sold its North American business for $104 million. Global sales reached about $1.4 billion even as debt exceeded $500 million. A failed IPO and a crushing debt load amplified financial strain. Tariff difficulties and heightened competition from sleeker chains such as Lovisa, Studs, and Rowan eroded market position. A surprising pandemic-era sales rebound proved insufficient to offset structural and strategic problems.
Read at Fast Company
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