Claire’s, the popular tween accessories retailer, will close seven stores in New Jersey as part of its ongoing Chapter 11 bankruptcy proceedings. The closures, which include both Claire’s and its Icing brand shops, are part of a nationwide reduction that will see 234 stores shuttered while approximately 950 remain open.
In a filing made August 25 in U.S. Bankruptcy Court in Delaware, the Illinois-based chain confirmed that the New Jersey stores targeted for closure include Claire’s locations in East Brunswick’s Brunswick Square, Mays Landing’s Hamilton Mall, Paramus’ Bergen Town Center, Vineland’s Cumberland Mall, and on East Broad Street in Westfield. Two Icing shops will also close: one in Deptford Mall and another in Wayne’s Willowbrook Mall.
Founded in 1961, Claire’s has become a fixture in malls across the country, best known for selling affordable jewelry, purses, hair accessories, and plush toys, as well as providing ear-piercing services. But shifting consumer behavior, declining mall traffic, and supply chain challenges have forced the retailer to scale back its physical presence.
Bankruptcy Filing and Acquisition Plans
The closures follow Claire’s Chapter 11 bankruptcy declaration earlier this month, its second in less than a decade. The company also indicated in court documents that it might be forced to liquidate its North American business if a buyer had not emerged. Shortly afterward, private equity firm Ames Watson stepped forward with plans to acquire Claire’s in a $140 million deal, consisting of $104 million in cash and a $36 million seller note.
The agreement includes a $22.5 million debtor-in-possession loan to keep the company operational through bankruptcy and calls for Ames Watson to acquire between 795 and 950 Claire’s stores. The sale remains subject to court approval in both the U.S. and Canada.
Impact in New Jersey
Despite the closures, Claire’s stressed that the majority of its New Jersey footprint will remain intact. Stores in major shopping destinations such as Bridgewater Commons, Cherry Hill Mall, Freehold Raceway Mall, American Dream in East Rutherford, and Westfield Garden State Plaza will stay open. Two Icing locations, including shops in Menlo Park Mall and Ocean County Mall, will also continue operating.
Still, the shutdowns mean a direct hit for affected communities and workers. Claire’s disclosed to the New Jersey Department of Labor & Workforce Development that it anticipates cutting 155 jobs statewide by November 3.
A Brand in Transition
Claire’s previously filed for bankruptcy in 2018, leading to a restructuring deal with creditors including Elliott Management and Monarch Alternative Capital. At the time, the chain operated more than 4,500 stores globally. In recent years, it has attempted to revive its image, including exploring IPO plans in 2013 and again in 2021, though both efforts were abandoned.
The retailer’s troubles reflect broader challenges for mall-based chains as consumer preferences continue to shift toward online shopping. While Ames Watson’s acquisition offers a potential lifeline, the closure of seven New Jersey stores highlights the precarious nature of brick-and-mortar retail in the current economic climate.
For now, New Jersey shoppers can expect many Claire’s and Icing locations to remain in business — but the chapter closing on these seven stores underscores that even iconic brands are not immune to the pressures reshaping the retail landscape.
