Claire’s Bankruptcy Impacts Chinese and Asian Suppliers

Suppliers and creditors from Hong Kong, mainland China, and across Asia tied to US-based fashion chain Claire’s find themselves in turbulent waters following the company’s recent bankruptcy filing. Despite the holiday cheer, financial anxieties loom large as debts recovery prospects appear uncertain. The root of these concerns can be traced back to Claire’s decision to file for bankruptcy in the US for the second time in 7 years due to weak consumer spending and the shift to online shopping. With nearly US$500 million in loans due by December 2026, the challenges facing Claire’s suppliers and creditors are substantial. In a…