Business collapse leaves over 2,000 jobs uncertain at Claire's
Claire's, the popular brand known for its accessories among teenage shoppers, is facing serious financial difficulties. The company, which trades from approximately 2,750 stores globally, has filed for administration in the UK and Ireland, putting around 2,150 jobs at risk.
Despite the challenging circumstances, all 306 stores across the UK and Ireland remain open, and store staff continue in their positions. Administrators from Interpath—Will Wright and Chris Pole—have been appointed to evaluate options for the business and seek a potential rescue or sale deal.
The move comes as Claire's has been struggling to find a buyer for its British high street operations. The company entered administration due to weak consumer demand, increased competition, debt obligations, and shifts away from bricks-and-mortar retail.
Chris Cramer, CEO of Claire's, stated that the move is part of an effort to protect the company's long-term value. No information about the assessment options for the company has been provided as of yet.
The UK operations’ collapse follows Claire’s recent Chapter 11 bankruptcy filing in the US and financial struggles worldwide, including in Canada and France. Susannah Streeter, head of money and markets at Hargreaves Lansdown, mentioned that Claire's is facing stiff competition from online retailers and fast fashion giants.
Will Wright, UK chief executive at Interpath, will endeavor to continue operating all stores as a going concern for as long as possible. Prospective bidders, including Lakeland owner Hilco Capital, have backed away from making offers in recent weeks. Administrators are set to seek a potential rescue deal for the chain.
It is the second time the group has declared bankruptcy, after first filing in 2018. Claire's is currently owned by former creditors Elliott Management and Monarch Alternative Capital following a previous financial restructuring.
During this period, Claire's has stopped accepting online orders, though orders dispatched before administration will be delivered; undelivered orders will not be charged. Employees are being contacted by administrators to advise them of what administration means for them, but all staff currently remain employed.
The future of the 306 stores—278 in the UK and 28 in Ireland—remains uncertain, but for now, customers can continue to shop at their local Claire's branch as usual while a path forward is explored. The company is also exploring a potential sale to secure the future of the brand.
The financial difficulties facing Claire's, a popular fashion-and-beauty retailer, have led to the appointment of administrators from Interpath, who will evaluate options for the business, such as a potential rescue or sale deal, in an effort to protect the company's long-term value. Meanwhile, the company is exploring a potential sale to secure the future of the brand, amidst stiff competition from online retailers and fast fashion giants, and the uncertain future of its 306 stores, representing various lifestyle sections and contributing to businesses globally.
