why is claire's closing

Claire's is closing over 290 stores in the United States as part of its second Chapter 11 bankruptcy proceedings filed earlier in August 2025. The company is shuttering 235 Claire's outlets and 56 Icing stores due to multiple challenges such as growing competition from online fast-fashion retailers (like Shein and Temu), rising interest rates and inflation, tariffs on imports from China, and a shift away from physical retail spaces toward online shopping. The company also struggles because many of its young customers rely on the tactile in- store experience, which is difficult to replicate online. Claire's has faced ongoing financial difficulties since its first bankruptcy filing in 2018, and the current closures are part of restructuring efforts under new ownership by private equity firm Ames Watson, which aims to maintain a smaller but significant retail presence. If a buyer is not found, Claire's may have to close even more stores or liquidate its North American operations completely.