Claire’s, the tween accessory retailer, is in turnaround mode. Again. Claire’s is hoping to pierce the boredom barrier among its target audience of not-yet-teenage girls.
The Wall Street Journal wrote a glowing review of Claire’s new CMO and her laser-focused approach to meeting the needs and addressing the problems of global tweens.
This is, of course, the correct approach. When in a turnaround, one vital element is focusing on the brand core.
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Claire’s really needs brand love from its core customers. Claire’s has been in and out of Chapter 11 twice in the past 10 years. The first filing was in 2018, and the most recent was last year, 2025.
Between the two bankruptcies, Claire’s Holdings LLC was recognized by Fast Company’s (the monthly business magazine) prestigious, annual list of the World’s Most Innovative Companies for 2023. Claire’s was number two on the retail sector list. Fast Company recognized Claire’s creative brand-business strategy that turned Claire’s into a powerful, global, and fun fashion brand. Additionally, Fast Company cited Claire’s ability to connect with its consumers through surprise and delight with on-trend offerings, consistency of the total brand-business experience, and its caring customer service.
In those post-COVID years, while many retailers were drowning in excess merchandise and figuring out how to survive, Claire’s pursued an innovative growth strategy. Underlying Claire’s’ strategy was an exceptionally clear understanding of Claire’s’ target audience. Claire’s called these individuals “Genzalpha.” Claire’s described the Genzalpha cohort as
“…fearless, authentic and wildly creative in the ways they show up, and our brand is a platform that creates space for them to express all sides of themselves.”
By knowing its prime prospects, their needs, problems, and values, Claire’s became a tween, teen, and young girls brand-business juggernaut. Rather than being Covid-19 risk-averse, Claire’s was relentless in its innovation and offerings.
A significant part of Claire’s between-the-bankruptcies era was “renovation,” focused on articulating and entrancing the core target audience. Claire’s had a brand promise, a dedicated global brand team that understood the core customer, and a commitment to renovation and innovation. The brand work was impressive, just not enough, apparently.
The understanding of the core customer between the bankruptcies seems to be eerily similar to where Claire’s is headed now, according to The Wall Street Journal.
So, what happened? How did Claire’s go from wonderful to weary? How did Claire’s go from Wonderland to Neverland so quickly?
“Show me the money” happened.
Unfortunately, Claire’s could not overcome the financial constraints that hampered every smart effort.
As with Toys R’ Us, Bed Bath & Beyond, Sears, and a slew of other retailers, financial finagling from financial wizards happened. Claire’s crushing debt accumulated from several buyouts, take-overs, or whatever else you wish to call these structures, overcame the brand.
Online and other media business observers are full of analyses of Claire’s struggles. Credit Pulse wrote about Claire’s “overwhelming debt burden.” WWD reported that the crushing debt load was a factor in Claire’s challenges, if not the major reason. Each financial ownership change highlighted debt.
Financial health must be the first step in any turnaround. Stop the bleeding is the accepted first-action-step mantra. Exiting Chapter 11 (twice) with a load of debt does not signal a healthy prognosis.
There is a view that, in business, a brand’s culture eats even the best, most enlightened strategy for breakfast. There should also be a view that financial engineering eats for breakfast, lunch, and dinner, even the best brand building, brand revitalization plan.
Brands are hurt, damaged, and killed by the perfidious practices of financial engineering. Financial engineering weakens brands. Financial engineering that increases dividends and short-term profits often leads to the erosion of goodwill and brand value. Taking on excessive debt, buying back stock, increasing dividends at the expense of brand building-cutting, and minimal investment in brand building accompanied by excessive costs-cutting including store closings, further debt accumulation, and massive employee firings, satisfies shareholders and equity organizations while starving brands of their future.
You cannot cost-manage your way to high-quality revenue growth. When management borrows money to buy back shares, to increase dividends at the expense of continuously improving a great brand experience, the business suffers. Financial engineering that extracts value from brands is brand value extortion. Innovation and renovation of products and services are ignored. Needed talent, look elsewhere for job opportunities.
Let’s face it: at some point, there is nothing left to cut. Then what?
Sure, tariffs, new, aggressive competition, and a changing shopping landscape have hindered Claire’s ability to shine. Claire’s new owners, yet another equity firm, may decide that online is better than brick-and-mortar retail. This is what occurred with Bed, Bath & Beyond. Shutting stores and ending real estate costs makes money.
Claire’s current approach to focusing on the core customer is an extremely important element of its plan to win. Yet, Claire remains heavily indebted. The new owner of the North American Claire’s, Ames Watson, has not erased the debt. In fact, aside from the massive debt, according to the court findings and online reports, Claire’s overall liabilities are in the $1 billion to $10 billion range, with funded debt sitting at approximately $690.8 million or $500, depending on the filing structure.
Even with such an unclear understanding of the debt burden, Claire’s has massive loans to settle.
The global Claire’s scene is also messy. WWD wrote:
“On September 19, 2025, it was announced that investment firm Ames Watson Capital had completed the purchase of the Claire’s North American business and the IP for $140 million, with the intention of keeping some of the retailer’s stores open.
“In January 2026, the UK side of Claire’s, owned by Modella Capital, went into administration again, with staff at risk of redundancy. All standalone outlets closed on 27 April 2026, though a number of concessions will continue to operate.
“In May, French entrepreneur, Julien Jarjoura, brought the UK naming rights for Claire’s, some executives, 50 stores, and some concessions; the remaining stores would remain closed, and the Claire’s UK corporate identity, its Irish business, and remaining stock from concessions would not be part of the deal. Claire’s UK stores and website would operate under Claire’s Europe, owned by Jarjoura. Jarjoura is reconsidering the brick-and-mortar approach.”
Claire’s is an interesting brand to watch. This current brand may turn around as a brick-and-mortar retail establishment. Or, Claire’s may wind up with an online business only. Clearly, the new Claire’s owner has a track record consistent with making successful use of intellectual property, leading to brand longevity.
Brand should strengthen competitive position, pricing power, and enterprise value. The Blake Project helps make that happen.
The problem for Claire’s and other brands that find themselves caught up in ongoing ownership auctions is that financial engineering is detrimental to brand health. Once in the vicious vortex of financial engineering, it is a challenge to survive.
Financial value extraction is brand value destruction, not valuable brand building. Financial engineers insist that their behaviors “unlock value.” These behaviors do not unlock value; they exploit value for short-term benefit. Enriching shareholders or private equity groups through artful financial activities combined with short-term marketing tactics does not address declines in customer satisfaction and brand loyalty.
Brands do not have lifecycles. Factories can be shuttered. Machinery may need to be replaced. Technology becomes outdated. Founders die. But brands can live forever. Brands do not die natural deaths. A brand can grow in value over time. But they can be murdered or mangled by misguided management maneuvers and machinations.
Contributed to Branding Strategy Insider by Joan Kiddon, Partner, The Blake Project, Author of The Paradox Planet: Creating Brand Experiences For The Age Of I
At The Blake Project, we help leaders turn brand into a disciplined driver of financial performance — strengthening pricing power, competitive position, and enterprise value. Email us to start a conversation about enduring profitable growth. For The EBITDA.
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