Fears for Claire's UK as bidders are thin on the ground
A report by Sky News said the news organisation 'has learnt that advisers to Claire's Inc… are not expected to land a solvent bid for its UK chain'. The British operation trades from around 300 British stores and the Europe-wide workforce (including the UK) numbers around 5,000.
Claire's UK isn't expected to file for administration imminently, although it could happen this month, according to Sky's sources.
That prospect comes as potential bidders appear to have got cold feet 'as the scale of the chain's challenges has become clear', a 'senior insolvency practitioner' told Sky. Those interested inthe business had been believed to include Lakeland owner Hilco Capital.
There has also been speculation that as many as a third of the UK shops could be closed if the chain is to survive. Restructuring firm Interpath Advisory had been hired to find a buyer for the UK and European operations. It hasn't commented on the latest report.
Meanwhile, Julie Palmer, partner at insolvency specialist Begbies Traynor, told FashionNetwork.com: 'Claire's second bankruptcy in seven years is emblematic of the broader crisis gripping the high street, both at home and abroad. The once-popular budget jeweller has struggled to keep pace with the rapid shift to online shopping. Its reliance on physical stores — once a key strength — has become a major liability. With its core customers of young teenagers having the ability to shop around with their thumbs across an ever-expanding range of internet options for cheaper and more convenient alternatives, a wave of store closures in the coming months looks inevitable.
'Tariffs have added to the strain. Claire's is heavily reliant on low-cost Chinese imports and the [parent company's] prospect of repaying the $500 million loan in December next year will be looming heavily over management's minds. The message is clear: the structural changes impacting every retailer have only accelerated meaning other long-standing names will have to adapt quickly to avoid a similar fate.'
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