Claire's UK and Ireland operation preps for administration with 2,000+ jobs at risk
The budget accessories and jewellery retailer has 278 UK stores and 28 Irish ones and they've been struggling in the same way as its North American branches (and those in other countries) have. Its UK and European businesses combined employ around 5,000 people.
The UK arm has filed a notice of intention to appoint administrator Interpath, which had already overseen the attempt to sell the UK and European business as a going concern. But it will continue to trade while all options are assessed as hopes of a solvent sale have been dashed.
That's perhaps unsurprising given how tough times have been for the firm and anyone buying the brand will find their job a lot easier without the need to take on the full store estate and thousands of staff.
Claire's CEO Chris Cramer 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.'
Claire's is owned by a group including US hedge fund Elliott Management and as well as the Claire's chain itself, it also operates the Icing jewellery and cosmetics brand.
Interpath said it will aim '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'.
As mentioned, while it has failed to find a buyer for the UK and European arm and avoid administration, its chances may be stronger now and there has been speculation that it may need to close up to a third of the UK stores.
Globally it runs over 2,750 stores in 17 countries and the last decade has been a story of struggles in those markets. The parent company had previously filed for bankruptcy in 2018 and the UK business has been loss-making in the past three years, as well as having a £350 million+ loan due to be repaid by the end of next year.
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