Claire’s, the high street jewellery and accessories retailer, has announced plans to enter administration in the UK and Ireland, putting over 300 stores at risk. The company has filed a Notice of Intention to Appoint Administrators (NOI), but reassures that its stores remain open and continue to trade as usual, with its website still accepting orders.
According to the BBC, Claire’s operates 278 stores in the UK and 28 in Ireland, with Will Wright and Chris Pole from Interpath expected to be formally appointed as joint administrators. This development follows Claire’s filing for bankruptcy in the US for the second time, with more than 2,700 stores worldwide.
Staff were reportedly instructed not to allow bailiffs into stores to seize anything following the bankruptcy announcement. Claire’s first entered bankruptcy in 2018 after failing to repay a loan.
Last month, Sky News reported that Claire’s was considering selling or restructuring its UK business. Hilco Capital, owner of Lakeland, had reportedly shown interest in acquiring Claire’s but is said to have withdrawn from the process. Since its 2018 bankruptcy, Claire’s has been controlled by former creditors including investment firms Elliott Management Corp and Monarch Alternative Capital LP, reports the Mirror.
Chris Cramer, chief executive officer, 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.”
The most recent bankruptcy documents filed in the US revealed that the company declared liabilities and assets valued between $1billion and $10billion. 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 £25million in losses across the past three years. During the year ending March 2024, it recorded a £4.7million loss, whilst turnover fell to £137million.
The firm faces a $500million (£375million) loan repayment deadline in December next year. Claire’s acknowledged it has struggled in recent years due to declining product sales and pressure from online rivals.
Stuart Greenfield, UK and European Sales Director at Advanced Supply Chain, commented: “Part of Claire’s Accessories’ problems are that its supply chain isn’t working, as it has failed to adapt in fast-changing markets. The retailer has borne the financial impact of US tariff reforms on imports from China, eroding already tight margins on low-value goods. And even before tariff changes, Claire’s was struggling to compete with the enhanced value and range of products that online marketplaces offer consumers.”
He added: “Sourcing and supply chain strategies should have been flexed to address margin dilution and to diversify and expand supplier networks. Successful retail models must constantly satisfy shopper demand for choice, availability, convenience and cost. Agile supply chains are the backbone of this and critical to delivering efficiencies that protect margins.”
Looking for more from MyLondon? Subscribe to our daily newsletters here for the latest and greatest updates from across London.
