Claire’s, the fashion accessories chain, is in the process of appointing administrators for its UK and Ireland business, putting approximately 2,150 jobs at risk. This move has raised concerns about the future of 306 stores, with 278 located in the UK and 28 in Ireland.
Last week, Sky News’ City editor Mark Kleinman reported that the US-based Claire’s group has been facing challenges in finding a buyer for its British high street operations.
Prospective bidders for Claire’s British arm, including the Lakeland owner Hilco Capital, have backed away from making offers in recent weeks due to the chain’s significant challenges, as noted by a senior insolvency practitioner.
Claire’s has officially filed a notice to administrators from advisory firm Interpath. The administrators will be seeking a potential rescue deal for the chain, which has experienced a decline in sales amid weak consumer demand.
The company has stated that Claire’s UK branches will continue to operate as usual and store staff will retain their positions once administrators are appointed.
Will Wright, UK chief executive at Interpath, commented, «Claire’s has been a well-known brand across the UK, recognized not only for its trendy accessories but also as a popular destination for ear piercing. We will strive to keep all stores operational for as long as possible while we explore options for the company, including the potential for a sale to secure the future of this beloved brand.»
The decision to appoint administrators comes after the Claire’s group filed for Chapter 11 bankruptcy in a court in Delaware last week, marking the second time the group has declared bankruptcy following the initial filing in 2018.
Chris Cramer, chief executive of Claire’s, explained, «This decision, though difficult, is part of our broader strategy to preserve the long-term value of Claire’s across all markets. In the UK, this step will enable us to continue trading while we assess the best way forward. We are thankful to our employees, partners, and customers during this challenging period.»
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Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted, «Claire’s appeal has diminished, with its high street stores no longer attracting the same level of business as before. While still popular among younger girls, families are not frequenting shopping centers as much, leading to a decline in footfall. The chain now faces tough competition from TikTok and Instagram shops, as well as cheap accessories offered by fast fashion giants like Shein and Temu.»
Claire’s has been a prominent presence in British shopping centers and on high streets for many years, particularly among teenage shoppers. Established in 1961, the company reportedly operates from 2,750 stores globally and is owned by former creditors Elliott Management and Monarch Alternative Capital following a previous financial restructuring.