Major update on future of iconic high street chain with 281 shops as store closures loom
Claire's, the popular jewellery and accessories chain, is facing mounting financial troubles that could spell disaster for its UK high street stores.
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The retailer, which has 281 stores across Britain, is scrambling to address a looming £355million debt repayment due in December 2026.
Advisers have been hired to look into ways to save the company.
Restructuring specialists at Interpath are seeking investors to salvage parts of the UK business, while American advisers are considering bankruptcy protection for the chain's US operations, according to The Telegraph.
The appointment of Interpath has sparked fears of widespread store closures and possible withdrawals from some countries as the company tries to cut costs.
Globally, Claire's operates over 2,300 stores and is well-known for its ear-piercing services.
Claire's UK arm has struggled financially, racking up £25million in losses over the past three years.
In the year to March 2024, it reported a £4.7million loss, slightly better than the £5million loss the previous year, with turnover slipping to £137million.
The company blames inflation, rising costs, and supply chain issues for its struggles.
It has also been hit hard by US tariffs on Chinese imports, as much of its low-cost merchandise comes from China.
Claire's was contacted for comment.
Why are so many shops going bust?
What's happening at Claire's?
This isn't the first time Claire's has faced financial difficulties.
The chain filed for Chapter 11 bankruptcy in the US in 2018 in a bid to restructure its debts.
It emerged years later under the control of creditors, including hedge funds Elliott Management and Monarch Alternative Capital.
The company is also reportedly exploring a sale of its North American and European operations, with bankers searching for potential buyers.
However, there's no guarantee a sale will go ahead, and for now, Claire's UK stores remain open and trading as usual.
Retail experts say Claire's is struggling to stay relevant in a competitive market.
Budget-conscious shoppers now turn to online platforms like for affordable jewellery and accessories.
Julie Palmer, partner at Begbies Traynor, said: "Claire's low-price offering is clearly not strong enough to win over its core customers – teens and young adults – as they now have access to a vast array of affordable and convenient products online through platforms like Amazon and Temu.
"So, with fewer reasons for its customers to visit their stores, the retailer has struggled to stay relevant."
Why is the retail sector struggling?
The retail sector has struggled in recent years due to the onset of online shopping and lockdowns during the coronavirus pandemic.
Higher inflation since 2022 has also hit shoppers' budgets while businesses have struggled with higher wage, tax and energy costs.
Last month, Polish owner Pepco Group sold Poundland to US investment firm Gordon Brothers for £1 after a downturn in trading.
The new owners are now asking the court for permission to close 68 stores and negotiate lower rents on others, with up to 82 more stores potentially shutting in the future.
Both Hobbycraft and The Original Factory Shop are also shutting branches as part of restructuring efforts.
Higher inflation since 2022 has also hit shoppers' budgets while businesses have struggled with higher wage, tax and energy costs.
The Centre for Retail Research has described the sector as going through a "permacrisis" since the 2008 financial crash.
Figures from the Centre also show 34 retail companies operating multiple stores stopped trading in 2024, leading to the closure of 7,537 shops.
RETAIL PAIN IN 2025
The British Retail Consortium has predicted that the Treasury's hike to employer NICs will cost the retail sector £2.3billion.
Research by the British Chambers of Commerce shows that more than half of companies plan to raise prices by early April.
A survey of more than 4,800 firms found that 55% expect prices to increase in the next three months, up from 39% in a similar poll conducted in the latter half of 2024.
Three-quarters of companies cited the cost of employing people as their primary financial pressure.
The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year.
It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year.
Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025."
Professor Bamfield has also warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.
"By increasing both the costs of running stores and the costs on each consumer's household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020."
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