Women's Fashion Chain Files for Bankruptcy, Closing All Stores

The Challenge of Brand Longevity in Retail

Retailers have long aimed to create a portfolio of brands that can cater to consumers throughout their lives. This strategy is akin to the progression from Disney Jr. to Disney, and eventually to Marvel, Star Wars, or The Simpsons. Ideally, a company would offer products from birth to old age, though not all attempts at this model have been successful.

For example, while Baby Gap and Gap are well-known, there’s no equivalent for older adults. Similarly, Foot Locker focuses on shoe sizes rather than age, which makes more sense in the context of footwear. However, creating a brand that transitions smoothly as customers age is challenging. A brand targeting teens often attracts younger audiences, making it difficult to maintain distinct customer segments.

Claire's, a chain that has operated since 1974, was once a rite of passage for teenage girls. It was where many first got clip-on earrings before getting their ears pierced. Now, Claire's has filed for Chapter 11 bankruptcy and has over 2,750 locations worldwide. As part of its restructuring, it plans to close more than 500 stores. What hasn't received much attention is the closure of its sister brand, Icing.

Icing: Claire's Attempt to Age With Its Customers

Icing was Claire's attempt to expand its reach to an older demographic. According to its website, Icing is "the jewelry, accessories and cosmetics 'it' store for young women between 18 and 35 years of age." However, as part of its Chapter 11 process, Claire's has hired Hilco Merchant Resources to begin liquidating assets. Some locations have already started closing sales, and the company is considering selling its assets.

Claire's CEO, Chris Cramer, acknowledged the difficulty of the situation but emphasized that the decision was necessary due to increased competition, shifting consumer spending habits, and the decline of brick-and-mortar retail. He also noted that the company has $500 million in debt and between $1 billion and $10 billion in total assets and liabilities.

Despite these challenges, Cramer remains optimistic about the company's potential value and is in discussions with potential partners. Initially, the plan was to close select locations, but the number of closures has grown over time. It now seems likely that the entire Icing brand will be shut down.

Other Major Retail Bankruptcies in 2025

Claire's is not alone in facing financial difficulties. Several other major retailers have also filed for Chapter 11 bankruptcy in 2025:

• Joann, the fabric and crafts retailer, filed for Chapter 11 for the second time in less than a year, citing declining sales. It plans to close all 800 of its stores nationwide.
• Party City announced the closure of all its stores by February 2025 after filing for Chapter 11 in January 2023, blaming inflation and changes in consumer spending.
• Liberated Brands, which includes Volcom, Billabong, and Quiksilver, filed for Chapter 11 in February 2025, citing high interest rates, inflation, and a shift in consumer preferences towards fast fashion. All stores under these brands are set to close in 2025.
• Forever 21 filed for Chapter 11 for the second time in March 2025, citing competition from overseas fast fashion brands and rising costs. The company plans to wind down its U.S. operations and close stores.
• At Home announced in June 2025 that it would close 26 stores as part of its Chapter 11 restructuring, later adding six more closures, though the list has changed multiple times.

These developments highlight the ongoing struggles in the retail sector, particularly for companies that have failed to adapt to changing consumer behaviors and economic conditions. As more retailers face similar challenges, the future of traditional brick-and-mortar stores remains uncertain.