Morstaple Claire closes files for many stores, bankruptcy
Claire is seeking “strategic alternatives” through Chapter 11 bankruptcy, and plans to close 18 US stores as they navigate economic pressures.
Tweens, a mall boutique chain preferred by teens and young women, Claire’s plans to close more than 290 stores as part of the bankruptcy process.
Claire’s Holdings LLC, which announced it had sold its North American business to private equity firm Ames Watson on August 20 for $104 million, listed more than 290 stores that are scheduled to close in its court application on Monday, August 25th.
Stores that will be closed include 235 Clare locations and 56 icing stores in the US. The filing also lists 830 stores (785 Clare locations and 45 icing locations).
The move comes after a company that filed for bankruptcy earlier this month pointed out in a subsequent court filing that more than 1,100 stores would need to close if a buyer was not found.
Claire’s new owner wants to maintain a “significant retail footprint”
According to the filing, store closure sales can continue to close, but sales elsewhere have been removed. The date of the expected store closure has not been revealed, but they are expected to happen on a rolling basis, the company confirmed with USA Today.
At the time of sale, Ames Watson, whose offices are in New York City and Columbia, Maryland, said he plans to save the retail chain in a reduced form.
“Clair has built strong emotional connections with generations of consumers, focusing on self-expression, creativity and accessible fashion,” Lawrence Berger, co-founder of Ames Watson, said in a statement. “We are committed to investing in the future by maintaining a significant retail footprint across North America, working closely with Claire’s team to ensure a seamless transition, and creating an updated pathway to growth based on our deep experience with our consumer brands.”
Claire’s Store Closure: See the full list and map
Of the 291 store closures, these states have the most: California (25), New York (18), Illinois and Pennsylvania (16 each).
Claire’s second month submitted amid tariffs, inflation and competitive challenges
The company, based in Hoffman Estate, Illinois, near Chicago, has been struggling ever since filing for bankruptcy in March 2018.
Supported by hedge fund Elliott Management and Monarch’s alternative capital, Claire continues to operate in more than 2,300 retailers in 17 countries across North America and Europe, including traditional Claire stores, 210 Claire locations embedded in Walmart stores, and 120 stores operating under the icing brand owned by Claire. The company also operates 9,000 concession kiosks within the mall.
Challenges include an increase in the super popular online fast fashion site Shein and Temu, which has been cut back on sales of the jewelry store chain, rising interest rates on goods from China, inflation and tariffs.
Contributions: Fernando Cervantes, USA Today, and Reuters
Mike Snyder is a national trending news reporter for USA Today. You can follow him in the thread, send BlueSky, X with X and send him an email Bliss & @mikegsnider.bsky.social & @mikesnider &msnider@usatoday.com
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