Rowland Schafer founded wig retailer Fashion Tress Industries in 1961. According to a 1965 advertisement listed on eBay, FTI wigs were made for "busy women who have to look their best at a moment's notice."

In 1973, as the wig industry waned, Schafer purchased a small Midwest chain called Claire's Boutiques. Schafer eventually sold off the wig industry and renamed his company Claire's Stores.

By the mid-1990s, Claire's had more than 1,000 retail outlets. The chain became a mall staple, notable for its focus on the pre-teen and teen audience. Stores featured bright colors and prices that kids could afford.

Schafer purchased the Afterthoughts mall chain in 1999 for $250 million, folding it into the Icing by Claire's brand. The second brand aimed for a slightly older demographic.

Claire's was a beloved ear-piercing spot among tweens. The store was known for its cheap, colorful jewelry. It offered both lobe and cartilage piercings — according to the website, the retailer has pierced more than 110 million ears.

Schafer ran the business until 2002, when he suffered a stroke. His daughters Bonnie and Marla then took over the business.

In 2007, the family accepted a take-private offer from Apollo Global Management for $3.1 billion. At the time, the company had more than 3,000 stores.

"The decision to sell the company that our father founded was reached after an enormous amount of soul-searching over time, and brings our strategic review to a successful conclusion," the Schaefer sisters said in a statement at the time.

In March of 2018, Claire's filed for Chapter 11 bankruptcy for the first time, saddled with $2 billion in debt. The retailer announced it would close 92 stores across America at the time, and said it had been hit by declining traffic in malls.

"A Claire's store is located in approximately 99% of major shopping malls throughout the United States," Claire's said in a bankruptcy filing at the time.

Claire's emerged from bankruptcy in December 2018 after having eliminated roughly $1.9 billion in debt.

By 2021, Claire's finances were looking up. The company was profitable, generated $1.4 billion in revenue. It also filed to raise $100 million in a planned IPO.

Ryan Vero, who had come on as CEO in 2019, touted the brand's turnaround to Fast Company and said that the mall brand wasn't dead.

"If a mall has died in a particular town, we're moving to wherever the thriving shopping center is," he said.

In 2023, Claire's postponed its IPO. One year later, Vero stepped down.

The store announced that it was filing for Chapter 11 bankruptcy on August 6, 2025.

"This decision is difficult, but a necessary one," CEO Chris Cramer said in the release. "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."

The bankruptcy filing also highlighted tariffs as a contributing factor.

"Claire's was not immune from the continued trend away from brick and mortar and more recent macroeconomic challenges, including higher interest rates, labor costs and, most recently, tariffs," the filing said. "While Claire's took many steps over the last few years to address these and other challenges, it was not enough to overcome the obstacles."

Claire's is set to close 700 locations, including Icing stores. If it fails to find a buyer, the brand could liquidate its remaining thousand-plus store footprint in North America.