Claire’s LLC, the jewelry and accessories chain popular with teens and young adults, filed for Chapter 11 bankruptcy in early August. Despite the national filing, the Hattiesburg and Laurel locations will remain open.
The company announced it is seeking to reduce debt and restructure operations after years of declining mall traffic and growing competition from online retailers. This is the second bankruptcy filing for Claire’s, which also reorganized under Chapter 11 in 2018.
“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,” Claire’s CEO Chris Cramer said in a press release to CBS MoneyWatch.
For many students at the University of Southern Mississippi, the announcement raised concerns about losing a store that provides affordable accessories and gifts. The Turtle Creek Mall location has been a consistent shopping option for students living in Hattiesburg.
“I immediately panicked when I saw the headline that Claire’s filed for bankruptcy,” said Mary Morgan Wert, a USM senior. “Claire’s is my default place to shop for last-minute costumes or party themes. Knowing that the local store is staying open is a huge relief for me.”
Claire’s stores became especially popular in the 2000s and 2010s for offering affordable jewelry, hair accessories and ear-piercing services. The company currently operates more than 2,750 stores worldwide, according to its website. While Claire’s has not released a full list of potential closures, company officials confirmed both the Hattiesburg and Laurel stores will remain open during the restructuring. Local employees said they have continued serving customers as usual and expect that to continue.
“My friends and I have gone to the local store to use their piercing services,” Wert said. “The staff is super helpful and continues to offer great service.”
Retail experts emphasize that Chapter 11 bankruptcy does not necessarily mean widespread closures. Instead, it allows companies to reorganize operations, renegotiate leases and reduce financial obligations while continuing day-to-day business.
The bankruptcy filing highlights the ongoing challenges facing mall-based retailers, as online shopping grows and traditional mall foot traffic declines. Still, Claire’s officials said they remain confident the restructuring will help the company emerge stronger.
For USM students and shoppers in the Pine Belt, the reassurance that their local stores will remain open is welcome news.
