Claire’s, the teen accessories retailer, has filed for Chapter 11 bankruptcy protection due to a high debt load and teens shifting online for shopping. This is the second filing since 2018, following other teen retailers like Forever 21. Claire’s assets and liabilities range between $1 billion and $10 billion.

The company plans to keep its North American stores open while exploring all strategic alternatives. CEO Chris Cramer stated the decision is necessary due to increased competition, shifting consumer trends, debt obligations, and macroeconomic factors. Claire’s, founded in 1974, operates over 2,750 Claire’s stores in 17 countries and 190 Icing stores.

Analysts attribute Claire’s struggles to high debt levels, increased costs from tariffs, and competition from online retailers like Amazon. The company remains in discussions with potential partners and will continue to pay employees, suppliers, and landlords. The bankruptcy filing was not a surprise, according to Neil Saunders of GlobalData, who cited internal and external challenges leading to this decision.

Claire’s faces intense competition from retailers like Lovisa, offering younger shoppers sophisticated jewelry at low prices. The growing competition from online players like Amazon poses challenges for the struggling retailer in reinventing itself. With high debt levels, increased costs, and fierce competition, Claire’s future remains uncertain in the retail landscape.

Read more at Yahoo Finance: Claire’s, known for piercing millions of teens’ ears, files for Chapter 11, 2nd time since 2018