The UK arm of jewellery retailer Claire’s has entered administration, raising uncertainty over the future of 2,150 employees and more than 300 stores across the UK and Ireland.
The business formally appointed insolvency specialists from Interpath Advisory on Wednesday, just one week after the chain’s US-based parent company sought Chapter 11 bankruptcy protection in Delaware. Interpath confirmed that while the search for a buyer continues, all 306 UK and Irish stores will remain open for now. However, online sales have been suspended.
Claire’s, best known for its colourful accessories and ear piercing services, reported a pre-tax loss of £4 million on revenues of £137 million for the year ending 3 February 2024. Administrators noted they are “exploring the possibility of a sale which would secure a future for this well-loved brand” without its existing debt burden.
The wider Claire’s group operates around 2,750 stores in 17 countries. It previously filed for bankruptcy in 2018, emerging from Chapter 11 in 2022. The company is owned by a consortium of investment firms, including Elliott Management and Monarch Alternative Capital.
In last week’s bankruptcy filing, the group cited a combination of factors for its financial distress: increased competition in the retail sector, shifting consumer spending habits, the ongoing move away from physical retail, and heavy debt obligations. It said discussions with landlords and suppliers were underway regarding the future of its North American operations.
The collapse of Claire’s UK comes amid broader turbulence for the UK high street. Just last week, fashion retailer River Island narrowly avoided administration after securing court approval for a restructuring plan that will see 33 of its 230 stores close.
