But analysts said Claire’s faces deeper problems than debt and the popularity of malls.
“When you fall into bankruptcy for a second time, it indicates there are some serious underlying problems you’ve not been able to resolve,” said Neil Saunders, managing director of GlobalData Retail. “The process should be about restructuring, putting the business on a firmer track, and that’s what the first round should have done.”
For decades, Claire’s thrived as a rite-of-passage stop for ear piercings and glittery accessories. But in Twin Cities malls, rivals are gaining traction.
Lovisa, based out of Australia, operates at Twin Cities Premium Outlets in Eagan as well as MOA.
Rowan, which also is at Southdale Center in Edina, plans to add 30 more stores this year. It started as an at-home service in 2018 but switched to brick-and-mortar retail a year later.
The company tested out shop-in-shops in hundreds of Targets in 2020 but exited the retailer in 2022 to focus on its own stores.