Getting your ears pierced at the mall is something of a tween rite of passage, and it’s an experience uniquely associated with Claire’s — but perhaps not for much longer. According to a series of court filings from earlier this month, Claire’s Stores Canada Corp. has applied for creditor’s protection under the Companies’ Creditors Arrangement Act (CCAA), citing roughly $8 million (CAD) in net losses in the year-to-date period ending on June 30, 2025.
The global accessories brand operates 120 retail store locations across Canada, and has 703 active employees in Canada, including 133 full-time workers and 570 part-time workers. While the stores will stay open during the restructuring, it’s not been uncommon over the past few years for embattled retailers to have their CCAA proceedings culminate in liquidation — Hudson’s Bay Company and Nordstrom to name a few examples.
The Geographic Distribution of Claire’s Stores As Of July 1, 2025
- Ontario — 45
- Alberta — 21
- British Columbia — 19
- Quebec — 13
- Saskatchewan — 7
- Manitoba — 6
- New Brunswick — 3
- Nova Scotia — 3
- Newfoundland & Labrador — 2
- Prince Edward Island — 1
*All stores operate out of leased premises.
According to an August 6 press release, Claire’s Holdings LLC — the parent company of Claire’s Canadian arm, which operates Claire’s and ICING stores across the US — entered into voluntary Chapter 11 proceedings first, while concurrently noting that it intended to begin CCAA proceedings in Canada.
“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 Claire’s CEO Chris Cramer in the release. “We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”
On the same day, both a pre-filing report from the monitor, KSV Restructuring Inc, and an initial order from the Ontario Superior Court of Justice confirmed the Claire’s Stores Canada Corp.’s CCAA proceedings, and the circumstances surrounding it. In its report, KSV cites the COVID-19 pandemic and changes in consumer behaviour, tariffs, and Claire’s “burdensome” lease portfolio as some of the reasons behind the brand’s liquidity constraints.
A summary of the cash flow forecast for the initial stay period prepared by KSV Advisory
KSV further describes instances of rent arrears, noting that the Claire’s failed to make payments to “some” of its landlords in June 2025, and all of its landlords in July and August 2025 in an effort to preserve liquidity. “As of the date of this report, the Applicant has received 78 default notices and 26 notices of termination, some of which have been cured,” it adds. “Landlords have also taken steps to restrict the Applicant’s access at 16 retail locations.”
Given the extent of its financial difficulties, KSV says Claire’s initiated a marketing process starting this past June, contacting around 150 possible buyers in respect of the sale of assets in North America and abroad. This resulted in “multiple” non-binding letters of intent, however, none were for Claire’s “business or assets on a standalone basis.”
“The Applicant is not profitable on a standalone basis and has incurred net losses for the year-to-date period ending June 30, 2025, of US $5.8 million,” KSV’s report goes on to say.
As the CCAA proceedings play out, the Ontario courts have ordered an initial “stay period” until August 15, under which Claire’s is protected from legal action while it attempts to restructure.