Mall-based teen accessories retailer Claire’s, known for helping usher millions of teens into an important rite of passage — ear piercing — but now struggling with a big debt load and changing consumer tastes, has filed for Chapter 11 bankruptcy protection.

Claire’s Holdings LLC and certain of its U.S. and Gibraltar-based subsidiaries — collectively Claire’s U.S., the operator of Claire’s and Icing stores across the United States, made the filing in the U.S. Bankruptcy Court in Delaware on Wednesday. That marked the second time since 2018 and for a similar reason: high debt load and the shift among teens heading online away from physical stores.

Claire’s Chapter 11 filing follows the bankruptcies of other teen retailers including Forever 21, which filed in March for bankruptcy protection for a second time and eventually closed down its U.S. business as traffic in U.S. shopping malls fades and competition from online retailers like Amazon, Temu and Shein intensifies.

Claire’s, based in Hoffman Estates, Illinois and founded in 1974, said that its stores in North America will remain open and will continue to serve customers, while it explores all strategic alternatives. Claire’s operates more than 2,750 Claire’s stores in 17 countries throughout North America and Europe and 190 Icing stores in North America.

In a court filing, Claire’s said its assets and liabilities range between $1 billion and $10 billion.

“This decision is difficult, but a necessary one,” Chris Cramer, CEO of Claire’s, said in a press release issued Wednesday. “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.”

Like many retailers, Claire’s was also struggling with higher costs tied to President Donald Trump’s tariff plans, analysts said.

Cramer said that the company remains in “active discussions” with potential strategic and financial partners. He noted that the company remains committed to serving its customers and partnering with its suppliers and landlords in other regions. Claire’s also intends to continue paying employees’ wages and benefits, and it will seek approval to use cash collateral to support its operations.

Neil Saunders, managing director of GlobalData, a research firm, noted in a note published Wednesday Claire’s bankruptcy filing comes as “no real surprise.”

“The chain has been swamped by a cocktail of problems, both internal and external, that made it impossible to stay afloat,” he wrote.

Saunders noted that internally, Claire’s struggled with high debt levels that made its operations unstable and said the cash crunch left it with little choice but to reorganize through bankruptcy.

He also noted that tariffs have pushed costs higher, and he believed that Claire’s is not in a position to manage this latest challenge effectively.

Competition has also become sharper and more intense over recent years, with retailers like jewelry chain Lovisa offering younger shoppers a more sophisticated assortment at low prices. He also cited the growing competition with online players like Amazon.

“Reinventing will be a tall order in the present environment,” he added.

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