Iconic high street chain ‘warns UK stores to turn away BAILIFFS' after US parent firm files for bankruptcy

The Sun

6 hours ago

CLAIRE'S staff have reportedly been told not to let bailiffs entering stores to take anything, following the collapse of its US business.
Last week, the accessories and jewellery chain, filed for bankruptcy in the US for the second time, sparking fears about closures worldwide.
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And now, the retailer, which has 281 stores in the UK, has reportedly warned store managers that bailiffs may turn up to its British stores, to try and recover debts.
Employees have been warned not to let the bailiffs leave with cash from tills, or any stock, and to report any visits to senior managers, reports Retail Week.
A source close to the business has also claimed that staff have been told they are no longer able to accept gift cards as payment, and must have their working hours pre-approved by managers.
"Morale among the staff was already very low", the source told Retail Week.
"So talk of bailffs potentially showing up to stores didn't improve matters much".
The Sun has reached out to Claire's for comment.
Uncertain future
Claire's has so far failed to attract a buyer, with Hilco Capital, pulling out after realising the severity of the chain's problems, a senior insolvency expert has said.
However, even if the accessories retailer does find a buyer, the deal could lead to store closures across the UK.
This is the second time that Claire's has filed for bankruptcy, after first declaring in 2018 due to unpaid loans.
Despite improving its finances by cutting $1.9billion (£1.4billion) in debt, Claire's has struggled with weak consumer demand and supply chain issues.
High street chain with 185 stores launches 70% off closing down sales ahead of 25 shops shutting
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.
Boss Chris Cramer said: "This decision is difficult, but a necessary one.
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
However, additional costs have added further pain to an already struggling sector.
The British Retail Consortium has predicted that the Treasury's hike to employer NICs from April will cost the retail sector £2.3billion.
At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.
The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year.
It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year.
Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025."
It comes after almost 170,000 retail workers lost their jobs in 2024.
End-of-year figures compiled by the Centre for Retail Research showed the number of job losses spiked amid the collapse of major chains such as Homebase and Ted Baker.
It said its latest analysis showed that a total of 169,395 retail jobs were lost in the 2024 calendar year to date.
This was up 49,990 – an increase of 41.9% – compared with 2023.
It is the highest annual reading since more than 200,000 jobs were lost in 2020 in the aftermath of the COVID-19 pandemic, which forced retailers to shut their stores during lockdowns.
The centre said 38 major retailers went into administration in 2024, including household names such as Lloyds Pharmacy, Homebase, The Body Shop, Carpetright and Ted Baker.
Around a third of all retail job losses in 2024, 33% or 55,914 in total, resulted from administrations.
Experts have said small high street shops could face a particularly challenging 2025 because of Budget tax and wage changes.
Professor Bamfield has warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.
"By increasing both the costs of running stores and the costs on each consumer's household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020."
"Increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire's and its stakeholders.
"We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives."
Claire's has suffered £25milion in losses over the last three years, with reports from Sky News suggesting that the UK arm of the business could go in to administration this month.
Retail experts say Claire's is struggling to stay relevant in a competitive market.
Budget-conscious shoppers now turn to online platforms like for affordable jewellery and accessories.
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.