(TNS) — Claire’s accessories stores are in danger of being on the chopping block.

That’s because a higher debt load and added costs from higher tariffs is pushing the popular fashion accessories and ear-piercing chain, which claims to have performed more piercings than any other chain, to the brink.

Now, its owners are considering selling the company, filing Chapter 11 bankruptcy for the second time, and other strategic alternatives.

“The chain’s owner has been shopping Claire’s partially due to concerns over President Donald Trump’s tariffs impacting pricing and margins. The company also has a $500 million loan coming due in December 2026,” according to an earlier TheStreet story. “If a buyer cannot be found, the owners could sell the global brand in pieces in order to pay off its debts.”

Claire’s has been struggling for years, as it faces challenges from other retailers that cater to its customer base. Those include e-tailers such as Shein and Temu, who both offer a wide range of better-quality merchandise at the same low-price points.

Kirthi Kalyanam, distinguished professor and executive director of the Retail Management Institute at the Leavey School of Business at Santa Clara University, believes that the chain hasn’t kept up with the times.

“The tween segment is a very volatile segment where trends ebb and flow rapidly,” he shared with TheStreet. “Even in the best of times, it is hard to stay on top of this segment. They exhibit FOMO behavior, back-to-school seasonality and are susceptible to weather. Tweens do not seem to show loyalty to specific retailers. They are more trend-driven.”

The tween demographic, which is Claire’s audience, have been attracted to other retailers.

“This segment is a very influenced online. Think TikTok and Shein and Instagram. This is where trends are created. This makes the retail business even more susceptible to changing fashion,” Kalyanam added.

Also, Claire’s remains a store that relies on foot traffic and while the mall traffic fell in June, it was up April and May.

“In June 2025, shopping center traffic fell slightly following two straight months of year-over-year (YoY) visit growth – although indoor malls continued to show the strongest performance, with just a 0.7% drop in YoY June visits. (Open-air shopping centers and outlet malls saw YoY visit declines of 1.6% and 4.4%),” according to Placer.ai data.

To Kalyanam, even though mall traffic isn’t an issue, tweens are still turning to their online options to purchase online.

“This segment is very, very digital forward. My sense of Claire’s is that they do not have an image of a digitally savvy retailer. I searched for a unicorn bracelet on their web site and got very poor results,” he wrote. “They are being outpriced by Shein and TikTok. The items at Claire’s are priced at $8.99, and comparable items at TikTok or Shein are priced at $2.99.”

Parents of Tweens have also been influential when it comes to online purchasing.

“I know that tweens are not supposed to have online accounts at Tiktok, but they do. I also suspect that their parents will buy things for them. I also suspect that due to driving restrictions, visiting stores (which is the core of Claire’s business model) is a bit harder for this segment,” he added.

The chain’s long-term survival seems grim to Kalyanam, even though its piercing business is an unwavering staple.

“All in all, I think it is very challenging for this format to survive, and the piercing, etc. is not enough of a moat to sustain the retailer. This is reflected in the prior bankruptcy of this retailer. This segment of the retail business is becoming an online media business, and I am not sure if Claire’s has the capital or the bench strength to execute this,” he shared.

Additionally, there’s been talk in the retail market that the retailer’s owners are seeking a buyer. But who might want to buy all of Claire’s or its parts remains to be seen.