Claire's on edge of collapse with 281 stores at risk as fashion retailer to file for administration
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CLAIRE'S has confirmed it will file for administration putting 281 stores at risk.
The jewellery and accessories chain has said it wants to appoint administrators to secure the future of the brand.
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Claire's UK has confirmed it has appointed administrators
Credit: EPA
The retailer said that stores will continue to stay open and trade as normal and no jobs will be lost.
The firm plans to use the administration process as a way to continue trading in the UK. Its website is also currently operational.
Consultancy firm Interpath are expected to be drafted in in the coming days to oversee the administration.
Chris Cramer, chief executive officer, 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."
It comes after the US parent business of Claire's filed for bankruptcy in the US for a second time, earlier this month.
The ear-piercing favourite also declared itself bust in 2018 due to unpaid loans.
Claire's operates 2,750 stores across 17 countries, but reports suggested the UK arm was unlikely to find a buyer.
Potential buyers, like Hilco Capital, have pulled out of making offers recently after realising how serious the chain's problems are, a senior insolvency expert said.
Earlier this week, it was reported Claire's staff had been told to not let bailiffs enter stores to take anything, following the collapse of the US parent business.
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.
Retail experts have said Claire's is struggling to stay relevant in a competitive market.
Budget-conscious shoppers are now turning to online platforms for affordable jewellery and accessories, and increasingly away from physical high street branches.
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."
RETAIL SECTOR STRUGGLES
The retail sector has struggled since the onset of online shopping and the coronavirus pandemic.
Higher inflation since 2022 has also hit shoppers' budgets while businesses have struggled with higher wage, tax and energy costs.
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