Claire’s Stores Inc. is weighing a potential sale as the beleaguered teen jewelry store contends with relentless competition and the impact of President Donald Trump’s tariffs, according to a report.
The company, primarily owned by private equity firms Elliott Management and Monarch Alternative Capital, tapped Houlihan Lokey Inc to find potential buyers for some or all of Claire’s locations, people familiar with the matter told Bloomberg.
FOX Business reached out to Elliott, Houlihan Lokey and Monarch for comment.
The company operates under two brand names: Claire’s and ICING. There are more than 2,750 Claire’s stores in 17 countries throughout North America and Europe and 190 ICING stores in North America. There are more than 300 franchised Claire’s stores, located primarily in the Middle East and South Africa. Claire’s products are also sold in thousands of concessions locations in North America and Europe, according to its website.
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Elliott and Monarch took control of the retailer since it emerged from Chapter 11 bankruptcy protection in 2018.
In its heyday, the store targeted a younger demographic with a wide selection of affordable jewelry, hair accessories and beauty products. Today, the retailer, which sources from China, is facing higher import costs due to Trump’s tariffs. Consumers are also curbing their spending in response to the current economic climate.
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A recent survey from consulting firm McKinsey revealed that they have already changed their spending habits or expect to change them soon in response to tariff announcements. Among them, more than half said this includes cutting back spending on nonessential items, according to the May survey.
Claire’s is also facing a $500 million loan that’s due in December 2026, Bloomberg reported. It also decided to defer interest payments on its debt to help preserve capital.
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