Shopping mall staple Claire’s closes many stores and files for bankruptcy
Claire’s is seeking “strategic alternatives” through Chapter 11 bankruptcy and plans to close 18 stores in the U.S. to overcome financial pressures.
Fossil will close 15 stores this year as mall retail sales continue to decline.
Fossil Group CEO Franco Foliato announced the closure during an earnings call in May. The company operates about 200 stores across the United States, but has already closed seven stores in the first three months of 2026.
With additional closures, Fossil will operate 185 locations worldwide by the end of the year.
The move follows the company’s trend of closures, with Fossil closing more than 100 stores since 2024, including 54 in 2024 and 49 in 2025.
USA TODAY contacted Fossil to obtain a list of the 15 stores that will close.
Fossil CEO says further transition to e-commerce
The company reported first-quarter adjusted operating income of $10 million, compared with $9 million in the year-ago period. Foliart said one of the company’s main priorities going forward is investing in its e-commerce platform.
Mall stores are changing frequently as some long-standing brands continue to close. Claire’s filed for bankruptcy in August for the second time in seven years, starting in March 2018. Prior to filing, the company operated 1,326 stores in the United States.
According to the University of Michigan’s Journal of Economics, malls are becoming less popular as e-commerce becomes the preferred method of shopping. Shopping centers are no longer a strong investment target as economic and technological challenges have led to declining retail sales over the past few decades, according to the student-run business journal.
Shopping malls are struggling as major retailers close. When Forever 21 went bankrupt, it closed 200 stores in the U.S., making it difficult for malls to rent out larger spaces to other tenants, according to the university.
However, there is hope as younger generations seem to be buying clothes at shopping malls. According to the university, shoppers between the ages of 18 and 24 made 62% of general merchandise purchases in stores last year.
Michelle Del Rey is a trending news reporter for USA TODAY. Please contact mdelrey@usatoday.com.
