A new map has revealed the 306 Claire’s shops at risk of closure amid news the fashion accessories chain will enter administration in the UK and Ireland. Bosses at the retailer’s US parent firm have filed a notice of intention, halting legal action against them and allowing restructuring discussions to take place.
In the meantime, stores have been told they will remain open and trade as usual, with orders still being accepted on the website. In a statement issued on Wednesday (August 13), advisory firm Interpath confirmed Will Wright and Chris Pole have been appointed as joint administrators and will now attempt to find a rescue deal.
The news comes after the chain reported falling sales due to ‘weak consumer demand’. Claire’s employees are to be contacted in due to course to hear “what the administration means for them”.
It’s estimated more than 2,100 people work for the company between store and management roles. Will Wright, UK chief executive at Interpath, said: “Claire’s has long been a popular brand across the UK, known not only for its trend-led accessories but also as the go-to destination for ear piercing.
“Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company. This includes exploring the possibility of a sale which would secure a future for this well-loved brand.”
You can use our interactive map to check if a branch of Claire’s near you could be threatened:
The appointment of administrators in the UK and Ireland follows the US-based Claire’s group filing for Chapter 11 bankruptcy in a court in Delaware last week. It is the second time the group has declared bankruptcy in less than a decade.
Staff were reportedly instructed not to allow bailiffs into stores to seize anything following the announcement. Claire’s first entered bankruptcy in 2018 after failing to repay a loan.
The most recent bankruptcy documents revealed the company declared liabilities and assets valued between $1 billion and $10 billion. The paperwork also disclosed that the firm was indebted to more than 25,000 creditors.
In the UK, Claire’s is understood to have accumulated £25 million in losses across the past three years. During the year ending March 2024, it recorded a £4.7million loss, whilst turnover fell to £137 million.
Reflecting on the administration notice, Chris Cramer, chief executive of Claire’s, said: “This decision, while difficult, is part of our broader effort to protect the long-term value of Claire’s across all markets. In the UK, taking this step will allow us to continue to trade the business while we explore the best possible path forward.
“We are deeply grateful to our employees, partners and our customers during this challenging period.”
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