Claire's to appoint administrators for UK and Ireland business - putting thousands of jobs at risk
The move will raise fears over the future of 306 stores, with 278 of those in the UK and 28 in Ireland.
Sky News' City editor Mark Kleinman to find a buyer for its British high street operations.
Money latest:
Prospective bidders for Claire's British arm, including the Lakeland owner Hilco Capital, backed away from making offers in recent weeks as the scale of the chain's challenges became clear, a senior insolvency practitioner said.
Claire's has now filed a formal notice to administrators from advisory firm Interpath.
Administrators are set to seek a potential rescue deal for the chain, which has seen sales tumble in the face of recent weak consumer demand.
Claire's UK branches will remain open as usual and store staff will stay in their positions once administrators are appointed, the company said.
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."
The development comes after the Claire's group filed for Chapter 11 bankruptcy in a court in Delaware last week.
It is the second time the group has declared bankruptcy, after first filing for the process in 2018.
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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Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Claire's attraction has waned, with its high street stores failing to pull in the business they used to.
"While they may still be a beacon for younger girls, families aren't heading out on so many shopping trips, with footfall in retail centres falling.
"The chain is now faced with stiff competition from TikTok and Insta shops, and by cheap accessories sold by fast fashion giants like Shein and Temu."
Claire's has been a fixture in British shopping centres and on high streets for decades, and is particularly popular among teenage shoppers.
Founded in 1961, it is reported to trade from 2,750 stores globally.
The company is owned by former creditors Elliott Management and Monarch Alternative Capital following a previous financial restructuring.
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