Walking through a shopping mall today feels very different than it did even a decade ago.
Depending on where you live in the U.S., you’ve likely noticed a lot of empty spots in your local mall, along with more unfamiliar stores that were never there before.
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The death of the mall has been ongoing for years, and all this is simply symptomatic — although some researchers will tell you that’s not the case.
For instance, in 2024, visits to indoor shopping malls were up 1.5% over 2023, according to data from Placer.ai.
Related: Major retail chain supplier files for bankruptcy liquidation
Regardless of what the promising data has to say, many of the staple mall retailers you’ve either seen or shopped at for years are going out of business.
Forever21 finally shuttered this year after declaring a second bankruptcy, which led to closing all its stores. It blamed other fast fashion retailers like Shein and Temu in part for the failure of its business.
While some mall staples are hanging on, a lot of them are struggling to stay in business — and now a 64-year-old chain is considering filing for bankruptcy for a second time.
The struggles of an ’80s classic
If you were a kid or a teen in the ’80s, it’s very likely you may have gotten your ears pierced at Claire’s.
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Originally founded in 1961, the tween retailer sells jewelry and accessories, but was especially known for its ear piercing services, which were quick and easy. In the ’90s, it was common to find Claire’s crowded with teens shopping or wanting to get their ears pierced.
Related: Retail chain that survived Chapter 11 bankruptcy in trouble again
By the late 2010s, however, trouble was brewing. Claire’s filed for Chapter 11 bankruptcy in 2018, blaming a decline in consumer demand and online retailer competition.
It followed up by shuttering close to 100 of its store locations and working with Elliott Investment Management and Monarch Alternative Capital to eliminate its debt. By 2022 that plan worked, and the company was able to exit bankruptcy.
As part of its comeback strategy, Claire’s also planned to focus on its locations in prestige malls, as well as set up kiosks to sell its products in drugstores and grocery stores.
Claire’s prepares for round 2 of bankruptcy
On July 11, reports surfaced that Claire’s is considering declaring Chapter 11 bankruptcy a second time.
This move was predicted a few weeks ago, when TheStreet’s Daniel Kline reported that Claire’s was being shopped for a new owner.
“The chain’s owner has been shopping Claire’s partially due to concerns over President Donald Trump’s tariffs impacting pricing and margins. The company also has a $500 million loan coming due in December 2026,” Kline reported.
“If a buyer cannot be found, the owners could sell the global brand in pieces in order to pay off its debts.”
The teen accessory chain has received interest for its European assets, some sources said, per reporting from Bloomberg.
While no decisions have been made yet, the company’s owner, Apollo Global Management, is under rising pressure to make a decision.
Claire’s owns 750 Claire’s stores in 17 countries throughout North America and Europe. It also owns the Icing brand, aimed at an older customer, with 190 locations in North America.
Related: After 2 Chapter 11 bankruptcies, fashion retailer shutting down
