RETAIL WOES
Mall fave Claire’s shut out of San Marcos store amid bankruptcy filing
Several Claire's stores have been locked out due to nonpayment of rent.
If you got your ears pierced in the '80s or '90s, it was likely at Claire's. Now the company that became famous for fast-fashion jewelry and accessories is in hot water, with several of its stores — including the outpost at Tanger Outlets in San Marcos — closing due to nonpayment of rent.
Tanger management taped a sign to the San Marcos location's door, saying the company had changed the locks to secure the storefront. According to a report from Bloomberg, the shutdowns are a national trend. Citing an unnamed source, the business news site claimed the company had elected to forgo June and July payments as it moved closer to filing for bankruptcy.
On Wednesday, August 6, that filing became official in the United States Bankruptcy Court for the District of Delaware. While Claire's pledged to keep its North American stores open, it did say negotiations for a sale began before the court proceedings.
"This decision is difficult, but a necessary one. Increased competition, consumer spending trends, and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire's and its stakeholders," said Chris Cramer, CEO of Claire's, in a statement. "We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives."
Once a small regional jewelry chain, Claire's began rapidly growing in the '80s as it gobbled up other retailers. Its inventory — a glittery mix of rubber bracelets, enamel rings, and prom sparkles — flew off the shelf when malls were the center of teen life.
But for years, the accessories chain has been at a competitive disadvantage due to the rise of ultra-cheap brands like Temu and Shein. Claire's also imports the bulk of its baubles from China and other Asian countries, which are now subject to the Trump administration's aggressive trade policies.
Claire's most recently filed for bankruptcy in 2018, shedding almost 2,000 locations. Currently, the chain operates 2,750 stores internationally and more than 190 locations of its more adult offshoot brand, Icing. It's unclear if or when the San Marcos store will reopen. Calls to the listed phone number went unanswered.
