AN iconic 90s retailer has officially kicked off its liquidation sales with discounts up to 80% off as a popular location plans to turn off its lights in just days.
The shutdown comes amid big news for Claire’s, marking a major reversal from previous plans.
Claire’s has struggled in recent years, filing for bankruptcy for the second time in August[/caption]
Claire’s shoppers will see hundreds of locations on the chopping block[/caption]
A popular Claire’s location will turn off its lights for good in just days[/caption]
Claire’s blossomed in popularity during the 1990s and early 2000s, later experiencing a period of struggle followed by a bankruptcy filing in March 2018 and again this August.
The mall staple was considering liquidating all of its 1,500 stores in North America until it was saved by investment firm Ames Watson.
The chain is now plotting to close around 300 stores, including 56 Icing locations and 235 Claire’s spots.
New York, one of the states with the most impending shutdowns, is expected to see around 20 closures, including the location at 863 Broadway in Manhattan.
Shoppers walking past the popular spot are greeted with an array of colorful signs out front alerting them of the massive discounts available as the store prepares to close in just days.
Customers can stack up the savings based on how many items they purchase.
BRANDS HARD HIT BY BANKRUPTCIES
Many chains have struggled to adapt to a post-Covid retail landscape, with several companies filing for bankruptcy
JoAnn Fabrics and Crafts announced it would close all 800 stores after filing for bankruptcy twice in a year.
Hooters announced plans to file for Chapter 11 bankruptcy protection in February.
Liberated Brands announced that it would be closing all 122 retail locations for its boardsport fashion brands Quiksilver, Billabong, and Volcom.
Forever 21 shut down its headquarters after filing for bankruptcy and laying off 358 employees.
Macy’s announced major restructuring plans amid mass store closures.
A 60% discount, for example, is available to those who buy four or less items.
Shoppers who checkout with five or more items can score 70% off.
Those who buy 10 or more items will see 80% slashed off their total.
Aside from New York, California and Illinois are expected to see a high rate of Claire’s closures, at 25 and 16, respectively.
The impending closures and sales at these doomed spots are the result of the teen and tween accessories chain’s second bankruptcy filing on August 6.
The threat posed by online fast fashion retailers like Shein and Temu hurt Claire’s, as did high interest rates, inflation, and tariffs on products imported from China.
A MAJOR U-TURN
Claire’s was considering liquidating its entire store fleet until it was bought out by Ames Watson earlier this month through a $141 million acquisition, per a Friday press release.
As a result, hundreds of stores were saved from shutting down.
Claire’s: a timeline
- 1961: founded as Fashion Tress Industries by Rowland Schaefer
- 1973: Schaefer acquired Midwest jewelry chain Claire’s Boutiques and merged it with FTI, renaming the company Claire’s Stores
- Mid-1990s: Claire’s had more than 1,000 retail outlets.
- 1999: Schaefer acquired Afterthoughts mall chain for $250 million and converted into Icing by Claire’s brand
- 2007: Claire’s went private
- 2018: first bankruptcy filing, exited a few months later
- 2021: surge in sales
- 2025: second bankruptcy filing, acquired by Ames Watson for $140 million
RCS Real Estate Advisors worked with the investment firm to finalize lease agreements with landlords to keep more than 800 stores operating, per a separate release.
Ames Watson said it may avert up to 950 Claire’s closures, including popular locations in California, New York, Florida, Illinois, and other major markets.
“Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion,” said Ames Watson co-founder Lawrence Berger in a statement.
“We are committed to investing in its future by preserving a significant retail footprint across North America, working closely with the Claire’s team to ensure a seamless transition and creating a renewed path to growth based on our deep experience working with consumer brands.”
To help revive Claire’s, the company is planning to use a playbook similar to the one it used when it acquired Lids in 2019 and grew it into a billion-dollar business.
Ames Watson will focus on exclusivity, customization, and cultural relevance to help revamp the struggling mall chain.
Claire’s is just one of many stores that have been hit hard by challenges facing the modern retail industry.
For example, a beloved 55-year-old greeting card chain has collapsed into bankruptcy.
Meanwhile, check out three big changes coming to Bed Bath & Beyond as it claws back from bankruptcy.
Claire’s customers can score bigger discounts depending on how many items they purchase[/caption]
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