Claire’s Stores Inc, the tween-focused jewellery and accessories chain backed by hedge funds Elliott Management and Monarch Alternative Capital, is exploring a potential sale amid rising financial strain and mounting tariff-related import costs, according to a report by Bloomberg.
The hedge fund-controlled retailer has engaged Houlihan Lokey to run a sale process that could include all or part of its global business, including operations across North America and Europe, according to people familiar with the matter.
Claire’s, which emerged from bankruptcy in 2018 under the control of its former creditors, is now confronting intensified competitive pressures, a weakening consumer environment, and growing debt challenges — including a $500m loan maturing in December 2026. Bloomberg previously reported the company opted to defer interest payments to preserve liquidity.
The move signals a potential exit strategy for Elliott and Monarch, who have been steering Claire’s through operational and financial restructuring while the retailer contends with Trump-era tariffs that have increased the cost of China-sourced inventory — a key part of Claire’s low-price business model.
The hedge fund owners have also brought in Alvarez & Marsal to assist with operational turnaround efforts, as brick-and-mortar chains like Claire’s face growing pressure from online giants such as Amazon.
Claire’s operates more than 2,000 global stores and has over $1.3bn in annual revenue.
