CNN Spins Claire’s Bankruptcy Into an Anti-Trump Talking Point

Apparently, left-leaning media have gotten their marching orders. WFSB-3 in Hartford and Western Mass News, citing the Clown News Network (CNN), are reporting that Claire’s, a staple of failing malls throughout the U.S. and other countries, Canada in particular, is filing for bankruptcy, and you’ll get one guess to see who they are blaming.

If you guessed President Trump, you would be correct. 

According to articles posted on WFSB and other “media” websites, their headlines scream, “Claire’s files for bankruptcy in response to tariffs.”

Claire’s filed for Chapter 11 bankruptcy protection last week, the second time in less than ten years. But it’s Trump’s fault. 

From the story, it is clear that Claire’s had many more issues than any tariffs put in place by the Trump administration:

“The 64-year-old retailer in recent years has been dealing with competition from online rivals, mounting debt, and the uncertainty from tariffs.” [emphasis added]

So, instead of their headline reading “Claire’s files for bankruptcy in response to mismanagement and competition from online rivals,” CNN, with complicit parrotting from WFSB and other sources, tries to lay the blame on tariffs, even though any tariffs on the Chinese junk Claire’s specializes in do not even take effect until August 12.

However, for left-leaning media with a terminal case of Trump Derangement Syndrome, it’s easier to lay the blame on the tariffs to keep pushing a narrative. 

WFSB, Western Mass News, and CNN neglected the fact that Claire’s has also filed for credit protection in Canada, where Trump’s proposed tariffs do not affect their business.

In their statement seeking protection in our 51st state, Claire’s issued the following in a court document filed Wednesday in Canada:

“Claire’s has reluctantly concluded that there is not enough capital available to resuscitate the Canadian business to achieve profitability outside of a formal restructuring proceeding,” Suzanne Stoddard, senior vice-president and chief accounting officer of Claire’s, said in the document, the Toronto Star reported. 

In the US and Canada, Claire’s is “heavily dependent on importing its goods from China, Cambodia, and other Asian countries.” 

Aside from China’s increased tariffs being delayed until August 12, Cambodia currently has a 19% tariff on goods that went into effect on August 7.

That is a reciprocal tariff, meaning that is what Cambodia charges on US goods. Thailand is subject to the same reciprocal tariff as Cambodia, while Vietnam goods are charged a 20% reciprocal tariff, according to the Trade Compliance Resource Hub. 

Claire’s emerged from a previous bankruptcy filing in 2018, which eliminated “a substantial portion of debt from its balance sheet,” the Toronto Star reported. 

Also included in the Toronto Star report and conveniently eliminated from the CNN wire report is the following:

“According to the court document, Claire’s has faced strained liquidity over the past few years, as social distancing measures during the [COVID-19] pandemic ‘eliminated’ foot traffic to retail stores, while customers increasingly shifted to e-commerce and away from shopping malls.” 

The Star did briefly address the tariffs, which only went into effect last week (except China), claiming they “led to higher costs and uncertainty in inventory pricing,” noting that Claire’s sourced much of its inventory from China and Southeast Asia.

It is incredible how tariffs that were not yet in effect could lead to the bankruptcy of a company that has clearly had financial problems for years. 

You do not hate the media enough.