Jewellery chain Claire's enters administration in France
The brand, known for its earrings, piercings, and accessories aimed at teenagers, operated around 250 stores and employed approximately 800 staff at the beginning of 2024, according to its most recently published accounts.
On 24 July, the Paris Commercial Court opened a receivership procedure, including a six-month observation period, the lawyer said.
At the end of this period, the court will decide whether a recovery plan is viable—potentially involving a new buyer—or whether the company will be placed into liquidation, which would result in the cessation of its activities.
'They say they're looking for a buyer,' said Khaled Meziani, the lawyer representing the staff, speaking to AFP. 'But I fear there will be significant redundancies.'
Claire's is among a growing number of accessories and fashion retailers in France to enter receivership in the past 18 months. These include the teen fashion label Jennyfer, which was placed into receivership at the end of April but ultimately secured a buyer, saving 350 of the 1,000 jobs at risk.
Many French brands are struggling to compete with ultra-low-cost Asian platforms such as Shein and Temu.
Present at the court hearing, Véronique Revillod, General Secretary of the CFDT Services Federation, told AFP there had been a lack of clarity in Claire's France's financial disclosures. She noted that the company had remained profitable last year and questioned the rationale behind its decision to seek court protection.
Claire's France posted a net profit of 1.3 million euros between the end of 2023 and the end of 2024, following an 800,000 euro profit the previous year, according to its published accounts.
However, revenue declined year-on-year from 142 million euros to 132 million euros, of which 37 million euros came from wholesale activity across Europe supplying other Claire's stores.
The US-based parent company is also facing financial strain. Claire's previously filed for Chapter 11 bankruptcy protection in 2018 and is reportedly preparing to do so again, according to Bloomberg. The latest difficulties are said to stem from tariffs introduced under former President Trump on goods made in China—products on which Claire's is heavily reliant.
AFP reached out to the UK-based holding company that owns Claire's France, but it did not provide an immediate response. This article was translated to English using an AI tool.
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
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