Around 2,150 jobs at risk as Claire's Accessories to appoint administrators
The move will raise fears over the future of its 306 stores, with 278 of these in the UK and 28 Ireland.
Administrators are set to seek a potential rescue deal for the chain, which has seen sales tumble in the face of recent weak consumer demand.
Claire's UK stores will remain open as usual and store staff will stay in their positions once administrators are appointed, the company said.
Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company Will Wright, UK chief executive at Interpath
Will Wright, UK chief executive at Interpath, said: 'Claire's has long been a popular brand across the UK, known not only for its trend-led accessories but also as the go-to destination for ear piercing.
'Over the coming weeks, we will endeavour 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.'
It comes after the US-based Claire's group filed for Chapter 11 bankruptcy in a court in Delaware last week.
This decision, while difficult, is part of our broader effort to protect the long-term value of Claire's across all markets Chris Cramer, chief executive of Claire's
It is the second time the group has declared bankruptcy, after first filing for the process in 2018.
Chris Cramer, chief executive of Claire's, 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.'
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: 'Claire's attraction has waned, with its high street stores failing to pull in the business they used to.
'While they may still be a beacon for younger girls, families aren't heading out on so many shopping trips, with footfall in retail centres falling.
'The chain is now faced with stiff competition from TikTok and Insta shops, and by cheap accessories sold by fast fashion giants like Shein and Temu.'
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41 minutes ago
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Daily Mail
an hour ago
- Daily Mail
Opinion: I spotted a crushing housing market indicator - here's my advice
There was crushing news for shoppers in the US housing market this week. On Tuesday, a key measure of inflation rose at a faster rate than anticipated. The Consumer Price Index , which excludes volatile food and energy prices, was up 3.1 percent in July. Then, on Thursday, another gut punch. The Producer Price Index, which tracks the prices that US producers are paying for goods and services, spiked 0.9 percent last month. It's an indication of something that I've warned about for some time. Over the long-term, the costs of sky-high tariffs will be passed on to consumers. In the short-term, US companies have been absorbing the impact of President Donald Trump 's tariffs. But that wasn't going to happen forever. My assumption is that by the end of 2025, US tariff rates with settle around 10 to 15 percent on most counties (because Trump understands the inflation threat as well), but in the meantime expect to see consumer prices start to creep up – and faster. That'll have an impact on the housing market – but, perhaps, not how many expect. Rising prices (even on building supplies, like lumber from Canada) won't have a significant impact, but inflation makes it less likely that Federal Reserve Chairman Jerome Powell will lower interest rates at the Fed's next meeting in September. In fact, I'm betting there won't be a rate cut at all in 2025. And that will keep the US housing market in its current state of stagnation. Right now, the average rate on the 30-year fixed mortgage is 6.58 percent, which makes it difficult for many existing homeowners, who locked in previously low rates (as low as 3 to 4 percent), to sell their homes and take on a new, higher mortgage. As a result, they're demanding high sales prices – and buyers are feeling hopeless, facing exorbitant listings and high-interest mortgages. Those dynamics grind the gears of the housing markets to a slow crawl and - excluding pockets of the country, like Miami or Dallas Fort-Worth – they won't change until the Fed lowers rates and banks follow suit. On top of all that - here's the cold hard truth - the days of free money and low mortgage rates are over! The US economy is firing on all cylinders, 52 cents on every dollar is invested in the US and Trump's industrial policy is forcing even more companies to invest in America. That's good for job growth and GDP, but it won't help lower rates. So, here's my advice to anyone looking to buy a home: Accept that you'll have to buy a smaller house, likely 30 percent smaller. And do not – under any circumstances – buy a home that eats up more than 33 percent of your cash flow when factoring in insurance, taxes and mortgage payments. Many people break this rule to their detriment. Then they realize that they don't have the cash to maintain their homes and their lifestyles. I know this advice may seem heart-breaking – but here's some history to put it all in perspective: In 1981, the average 30-year mortgage was nearly 19 percent. The rates fell precipitously from there – but a decade later they were still above 8.5 percent. So, consider yourself lucky. And there is one more thing you can do to help buy the home of your dreams: move.
