Claire’s, a popular accessories retailer for tweens and teens, has entered administration in the UK and Ireland, jeopardizing over 300 high street stores and 2,150 jobs. Despite this, the stores are operating normally while the website has ceased taking orders. Claire’s, known for its ear piercing services, has halted refunds and will not fulfill pending orders.
With 278 stores in the UK and 28 in Ireland, the company has appointed joint administrators, Will Wright and Chris Pole from Interpath. This move follows Claire’s filing for bankruptcy in the US for the second time, causing concern for its extensive global presence of over 2,700 stores.
In 2018, Claire’s initially filed for bankruptcy due to loan repayment difficulties. Recent reports indicated the company was exploring options for the UK business, including a potential sale or restructuring. Despite interest from Hilco Capital, no deal materialized.
Following the 2018 bankruptcy, Claire’s has been under the control of former creditors like Elliott Management Corp and Monarch Alternative Capital LP. The company’s CEO, Chris Cramer, highlighted the decision as a strategic move to safeguard Claire’s long-term value.
Will Wright of Interpath expressed commitment to keeping the stores operational while evaluating future prospects, including a possible sale. Financial records revealed significant liabilities in the US, with debts owed to numerous creditors. In the UK, Claire’s has faced financial challenges, accumulating losses and declining turnover due to changing consumer behavior and online competition.
Looking ahead, Claire’s faces a significant loan deadline in the coming year. The company acknowledges the evolving retail landscape and aims to navigate these challenges while preserving its brand legacy.