Claire's Seeks Rescue: Retail Giant Struggles with Customs Pressure and Acquisition Strategy
New York, woensdag, 25 juni 2025.
Claire’s, the accessories retailer with over 2,000 stores worldwide, is at a critical turning point. Following its 2018 bankruptcy, the company faces significant financial challenges, including a debt of nearly $500 million due in December 2026. The enterprise is heavily impacted by US trade tariffs, higher import costs from China, and increasing online competition. Currently, the company has engaged Houlihan Lokey to find potential acquisition candidates who can rescue and transform the retail chain amidst a changing retail market.
Financial Challenges of Claire’s
Claire’s, an accessories retailer with a global presence, faces critical financial challenges. The company is grappling with a debt burden of nearly $500 million due in December 2026 [1]. Since its bankruptcy in 2018, the enterprise has been controlled by investment companies Elliott Management Corp. and Monarch Alternative Capital LP [1].
Market Challenges and Import Costs
The retail chain is experiencing significant pressure from US customs tariffs and high import costs from China [1]. Its business model has become vulnerable due to increasing online competition, particularly from players like Amazon [1]. Claire’s revenue figures demonstrate the complexity of its international operations: 55.385% of revenue comes from North America, 9.231% from the United Kingdom, and 16.154% from the European Union [1].
Acquisition Strategy
To address financial challenges, Claire’s has engaged investment bank Houlihan Lokey to find potential acquisition candidates [1]. The company currently operates over 2,000 stores worldwide, including 300 franchise locations in the Middle East and South Africa [1].