Claire's faces uncertain future with 280 UK stores at risk
Major high street brand Claire's is facing an uncertain future after its US parent business filed for bankruptcy. The fashion accessory and jewellery chain has filed for Chapter 11 bankruptcy protection with a court in the state of Delaware - its second such filing since 2018. A fixture of high streets and shopping centres, it operates more than 2,750 stores in 17 countries including the UK - casting the future of its 280 British outlets into doubt.
Alarm bells have been ringing over the future of the firm, which is hugely popular with young teenagers, for some time as it sought to clean up its finances. A month ago, reports suggested the firm was struggling with higher import costs tied to US President Donald Trump 's tariffs , alongside a drop in consumer spending. And last week, the chain was reported to have missed rental payments for some of its outlets in June and July.
Sky News reported today that advisers to US parent firm Claire's Inc has been exploring the possibility of offloading its UK stores, but that it was yet to find a buyer. It also reported that Lakeland owner Hilco was among the suitors considering a takeover deal for Claire's' UK operations. Up to a third of the chain's stores in Britain could be lost in the efforts to salvage part of the chain.
The US group said it is continuing in strategic review for the business, including discussions with 'potential strategic partners'. Chris Cramer, chief executive of Claire's, said: 'This decision is difficult, but a necessary one. '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.
'I'd like to express my gratitude for our employees, who have continued to work diligently in a constantly evolving consumer landscape to deliver amazing products and experiences for our customers. 'We remain committed to serving our customers and partnering with our vendors and landlords in other regions during this time.' Last month, restructuring firm Interpath Advisory was appointed to help find one for Claire's' UK and European business.
The firm declined to comment on the Claire's news when approached by the Daily Mail today. As of today, the UK arm of the firm - headquartered in Birmingham - has not filed for administration, but insiders told Sky this could change before the month is out. Delaware bankruptcy filings seen by the Daily Mail suggest the firm reported estimated assets and liabilities of between $1bn and $10bn (£750million to £7.5billion).
It owes money to between 25,001 and 50,000 creditors. Some of the creditors are owed upwards of $10million, according to the documents. Also listed on the filings, seeking joint administration, are the firm's Canada and Puerto Rico corporations, distribution firms and a number of holding companies, including one in Gibraltar. Claire's first filed for Chapter 11 bankruptcy in March 2018, and filed for an initial public offering on the stock market in 2021 - withdrawing those plans two years later.
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