Elliott-Backed Claire’s Eyes Sale as Tariffs Hit Budget Jeweller

Claire’s Stores Inc. is exploring a sale as the jewellery retailer faces mounting competition and higher import costs from US tariffs.

Bankers at Houlihan Lokey Inc. are leading the search for potential buyers of part or all of Claire’s, which includes store networks in North America as well as Europe, according to people familiar with the matter who asked not to be identified discussing private information.

Offloading the businesses would relieve pressure on the retailer’s owners. Claire’s, which has more than 2,000 stores globally, has been controlled by former creditors including investment firms Elliott Management Corp. and Monarch Alternative Capital LP since its 2018 bankruptcy.

Claire’s didn’t immediately respond to a request to comment. Elliott and Houlihan Lokey declined to comment, while Monarch also didn’t respond to an emailed request for comment.

Claire’s needs to address a nearly $500 million loan due in December 2026 and recently chose to defer interest payments on its debt to conserve cash, Bloomberg reported last month. The company tapped Houlihan Lokey and Alvarez & Marsal to help it shore up its finances and for operational assistance.

Once an almost ubiquitous staple of shopping malls selling accessories and piercings for pre-teens, Claire’s is grappling with higher import costs and a consumer slowdown in the wake of President Donald Trump’s trade tariffs. It is highly dependent on China for cheaper goods and like other brick-and-mortar stores, is under pressure from online competitors such as Amazon.com Inc.

Claire’s generated about $1.3 billion in sales last year, according to a pitch sent to potential buyers seen by Bloomberg. About $720 million was from its 1,537 stores in North America, it said, with about $120 million from the 280 shops in the UK and about $210 million from its 559 stores in the European Union.

The company also has over 300 franchised stores mainly in the Middle East and South Africa, according to its website.

By Jamie Nimmo and Sabah Meddings

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