Fears for major high street chain with 281 UK shops after US owner files for bankruptcy
US-based fashion accessories and jewellery business Claire's has filed for Chapter 11 bankruptcy in a court in Delaware, according to new filings.
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It is the second time the group has declared bankruptcy, after first filing for the process in 2018 after it was unable to repay a loan.
Claire's runs 2,750 stores across 17 countries.
It has around 280 stores in the UK and it's unlikely this part of the business will find a buyer, Sky News reports.
The group saw its finances improve after wiping around $1.9billion dollars (£1.4billion) off its balance sheet in a refinancing but has come under pressure from recent weak consumer demand and supply chain uncertainty.
The new bankruptcy filings showed that the business reported liabilities and assets of between $1billion and $10billion.
It also showed that the company owed more than 25,000 creditors.
The group is owned by a group of firms, including investment giant Elliott Management, who were creditors when the retail firm first faced insolvency seven years ago.
Last month, Sky News reported that Claire's is working with advisers from Interpath to seek a potential sale or restructuring of its UK business.
The report indicated that a sale deal could result in store closures across the UK.
It also reported that Lakeland owner Hilco is among suitors considering a takeover deal for Claire's' UK operations.
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