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Scotsman
5 days ago
- Business
- Scotsman
Claire's Accessories: bailiff warning for UK staff
The UK arm of the business is bracing for tough weeks ahead ⚠️ Sign up to the weekly Cost Of Living newsletter. Saving tips, deals and money hacks. Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Claire's US parent company filed for Chapter 11 bankruptcy last week UK stores face financial pressure with possible administration looming Staff told to block bailiffs from removing goods and report their arrival Gift cards no longer accepted, and working hours require manager approval Future of nearly 300 UK stores uncertain amid failed sale talks and heavy debts Shoppers could soon see a much-loved jewellery and accessories chain vanish from the high street as it faces mounting financial turmoil in the UK. And now Claire's Accessories – famous for its affordable earrings, hair accessories and on-the-spot ear piercings – has told managers that bailiffs may arrive at branches following the collapse of its US parent company. Advertisement Hide Ad Advertisement Hide Ad Staff have been reportedly told by bosses at the retailer - which entered Chapter 11 bankruptcy in the US last week - to block bailiffs from removing goods and to immediately alert management if they appear, according to Retail Week. Chapter 11 bankruptcy is a legal process that allows businesses to restructure while repaying debts. () | Getty Images But the trouble isn't contained to America, and the UK arm, which operates almost 300 shops nationwide, is believed to be teetering on the brink of administration after efforts to sell the business stalled. Retail Week also reports that staff have been told that gift cards can no longer be accepted as payment, and that working hours must now be pre-approved by managers – signs that the retailer is tightening operations as it battles for survival. Advertisement Hide Ad Advertisement Hide Ad Industry sources say Claire's has been under severe cost pressures, with a huge £355 million debt repayment due in December 2026 looming over the group. Buyers once reported in interested in a purchase of the business – including Hilco Capital, the investment firm that owns Lakeland – are understood to have pulled out, put off by the scale of the challenges. Restructuring specialists at Interpath Advisory have been exploring options for the UK business since last month, which could include finding a buyer for part or all of the chain, a company voluntary arrangement (CVA), or placing the business into administration. Advertisement Hide Ad Advertisement Hide Ad Will Claire's UK stores close? For now, the UK stores remain open, but the fate of the high street favourite hanging in the balance. The next few weeks could decide whether Claire's survives as a familiar fixture, or becomes the latest casualty in Britain's ongoing retail crisis. If the UK business does enter administration, sales, stock clearances and store shutdowns could follow rapidly. With gift cards reportedly already unusable, Claire's customers may want to make any remaining returns or exchanges soon, while the chance remains. Claire's is facing serious challenges after its US parent company filed for Chapter 11 bankruptcy, a move that allows restructuring amid financial difficulties.
Scotsman
6 days ago
- Business
- Scotsman
Popular high street fashion and jewellery chain with 25 Scottish stores at risk of closure
The retailer has 280 stores across the UK. Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... High street retailer Claire's is facing an uncertain future after its American parent company filed for bankruptcy for the second time while the retailer is struggling to find a buyer for its British high street operations. The fashion and jewellery chain filed for Chapter 11 bankruptcy protection in a court in Delaware on August 6, legal documents revealed last week. Advertisement Hide Ad Advertisement Hide Ad According to court records seen by USA Today, the chain has also identified over 1,100 US stores that could close soon and is looking for a buyer for about 800 remaining locations. Founded in 1961 in Chicago, Claire's specialises in selling necklaces, bracelets, and various accessories including headphones and soft toys. Claire's operates 2,750 stores across 17 countries, including around 280 across the UK – 25 of which are in Scotland. With the UK arm struggling to find a buyer for its British high street operations, it is not expected they will land a solvent bid according to Sky News. Advertisement Hide Ad Advertisement Hide Ad UK staff have now been reportedly told by bosses at the retailer to block bailiffs from removing goods and to immediately alert management if they appear according to Retail Week. Retail Week also reports that staff have been told that gift cards can no longer be accepted as payment, and that working hours must now be pre-approved by managers For many, getting their first ear piercing at Claire's has become a "rite of passage". | In Pictures via Getty Images The jewellery retailer previously filed for Chapter 11 bankruptcy in the US during March 2018 but now they're facing bankruptcy yet again. Why are they going bankrupt? The recent performance of Claire's has suffered due to rising competition from online fashion and jewellery sellers like SHEIN and from specialty retailers that offer ear-piercing services according to Claire's court documents. Advertisement Hide Ad Advertisement Hide Ad The company has also struggled to maintain its supply chain and profitability in the face of President Donald Trump's tariff policy. If the UK business does enter administration, sales, stock clearances and store shutdowns could follow rapidly. | UCG/Universal Images Group via G Will the UK arm find a buyer? At present, its UK operations remain unaffected by the bankruptcy proceedings in the United States, but the retailer is struggling to find a buyer for its British high street operations. The precise number of employees at its British operations is unclear, although one insider told Sky News the company had a 5,000-strong workforce across Europe, including the UK. Restructuring specialists at Interpath Advisory have been exploring options for the UK business since last month, which could include finding a buyer for part or all of the chain, a company voluntary arrangement (CVA), or placing the business into administration. Advertisement Hide Ad Advertisement Hide Ad Prospective bidders for Claire's British arm, including the Lakeland owner Hilco Capital, have backed away from making offers in recent weeks as the scale of the chain's challenges has become clear, a senior insolvency practitioner has said. Claire's operates 2,750 stores across 17 countries, including around 280 across the UK – 25 of which are in Scotland. Where are the Claire's stores in Scotland located? Inverness Elgin Aberdeen Trinity Centre Aberdeen St Nicholas Centre Perth Dundee Overgate Glenrothes Kirkcaldy Sterling Mills Edinburgh Princes Street Edinburgh Gyle Edinburgh Fort Kinnaird Livingston Livingston Outlet Falkirk East Kilbride Glasgow Fort Glasgow St Enoch Glasgow Buchanan Galleries Glasgow Sauchiehall Street Glasgow Silverburn Glasgow Braehead Clydebank Ayr Dumfries Will Claire's UK stores close? For now, the UK stores remain open, but the fate of the high street favourite is hanging in the balance. The next few weeks could decide whether Claire's survives as a familiar fixture, or becomes the latest casualty in Britain's ongoing retail crisis. Advertisement Hide Ad Advertisement Hide Ad If the UK business does enter administration, sales, stock clearances and store shutdowns could follow rapidly. With gift cards reportedly already unusable, Claire's customers may want to make any remaining returns or exchanges soon, while the chance remains.
Scottish Sun
6 days ago
- Business
- Scottish Sun
Iconic high street chain ‘warns UK stores to turn away BAILIFFS' after US parent firm files for bankruptcy
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) 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. Sign up for Scottish Sun newsletter Sign up 1 Claire's has 281 stores in the UK Credit: AFP 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.
.jpeg%3Fwidth%3D1200%26auto%3Dwebp%26quality%3D75%26crop%3D3%3A2%2Csmart%26trim%3D&w=3840&q=100)
Scotsman
6 days ago
- Business
- Scotsman
Claire's Accessories: bailiff warning for UK staff
The UK arm of the business is bracing for tough weeks ahead ⚠️ Sign up to the weekly Cost Of Living newsletter. Saving tips, deals and money hacks. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Claire's US parent company filed for Chapter 11 bankruptcy last week UK stores face financial pressure with possible administration looming Staff told to block bailiffs from removing goods and report their arrival Gift cards no longer accepted, and working hours require manager approval Future of nearly 300 UK stores uncertain amid failed sale talks and heavy debts Shoppers could soon see a much-loved jewellery and accessories chain vanish from the high street as it faces mounting financial turmoil in the UK. And now Claire's Accessories – famous for its affordable earrings, hair accessories and on-the-spot ear piercings – has told managers that bailiffs may arrive at branches following the collapse of its US parent company. Advertisement Hide Ad Advertisement Hide Ad Staff have been reportedly told by bosses at the retailer - which entered Chapter 11 bankruptcy in the US last week - to block bailiffs from removing goods and to immediately alert management if they appear, according to Retail Week. Chapter 11 bankruptcy is a legal process that allows businesses to restructure while repaying debts. () | Getty Images But the trouble isn't contained to America, and the UK arm, which operates almost 300 shops nationwide, is believed to be teetering on the brink of administration after efforts to sell the business stalled. Retail Week also reports that staff have been told that gift cards can no longer be accepted as payment, and that working hours must now be pre-approved by managers – signs that the retailer is tightening operations as it battles for survival. Advertisement Hide Ad Advertisement Hide Ad Industry sources say Claire's has been under severe cost pressures, with a huge £355 million debt repayment due in December 2026 looming over the group. Buyers once reported in interested in a purchase of the business – including Hilco Capital, the investment firm that owns Lakeland – are understood to have pulled out, put off by the scale of the challenges. Restructuring specialists at Interpath Advisory have been exploring options for the UK business since last month, which could include finding a buyer for part or all of the chain, a company voluntary arrangement (CVA), or placing the business into administration. Advertisement Hide Ad Advertisement Hide Ad Will Claire's UK stores close? For now, the UK stores remain open, but the fate of the high street favourite hanging in the balance. The next few weeks could decide whether Claire's survives as a familiar fixture, or becomes the latest casualty in Britain's ongoing retail crisis. If the UK business does enter administration, sales, stock clearances and store shutdowns could follow rapidly. With gift cards reportedly already unusable, Claire's customers may want to make any remaining returns or exchanges soon, while the chance remains.
Daily Mail
20-06-2025
- Business
- Daily Mail
Primark orders staff back into the office for four days a week to improve productivity - but they can still WFH on Fridays and finish at 2pm
Primark has ordered employees in its product teams to be in the office for four days a week, as it becomes the latest major company to crack down on working from home. The change will impact staff at its Arthur Ryan House global head office in Dublin from September 15, which is the start of the clothing retailer's next financial year. But the 650 affected employees at Primark, whose parent firm is Associated British Foods (ABF), will still be allowed to work from home on Fridays and finish at 2pm. Primark began a hybrid working model in September 2021 after the pandemic, when employees were told to return to the office for an average of three days per week. But bosses are now upping this to four days, telling Drapers that their protect teams being together in-person 'strengthens productivity, creativity and development'. Primark is the latest company to tighten its hybrid working policy, following others such as Barclays, Santander, PwC, Amazon, Boots, Asda, JP Morgan and WPP. A spokesman said: 'After experiencing remote, hybrid, and full-time models in recent years, we will be reintroducing a four-day in-office work week for our product teams. 'We know when our product teams are together in-person, it strengthens productivity, creativity and development, ultimately delivering the best offering for our customers. Data from the Office for National Statistics (ONS) shows the proportion of workers carrying out hybrid working has increased since the early days of the pandemic 'We understand how important balance is and we will continue to offer flexible working hours, and remote working on Fridays with a 2pm finish.' The move comes as it was revealed this week that John Lewis is asking some head office staff to be in the office or out on the road for at least three days a week. The department store chain said its commercial teams working in buying and merchandising were being asked to only work from home for two days a week. They were previously allowed to work at home for up to three days a week. John Lewis cited training and development for 50 new members of staff as being a key reason for bringing commercial employees back into the office for more days each week. Staff can also still request flexible working, but it needs to be agreed with their manager - and there is no impact on employees at Waitrose, which is part of the same business. But some John Lewis workers have been unimpressed by the changes amid concerns over office staff at the company's new London head office in Pimlico, according to Retail Week. A John Lewis spokesmand told MailOnline: 'Flexible working is an important part of our offer; everyone in our business can request to work flexibly, and most central office Partners have hybrid working arrangements in place. 'A collaborative culture is critical to help create the best product ranges and store environment for our customers and we're taking steps to encourage team members to spend time together in our offices, our stores, meeting brands and suppliers and balancing this with working remotely. 'We've also recruited around 50 new team members to help spearhead our range development and store modernisation - and their training and development is vital to set us up for success.' Remote working policies were introduced by most companies during Covid-19 lockdowns, with office employees the most affected by them. The most recent official data showed more than a quarter of the UK workforce is in hybrid work, meaning spending some days at the office and some at home. The Office for National Statistics (ONS) said earlier this month that 28 per cent of working adults in Great Britain were hybrid working between January and March 2025. Data also revealed the proportion of hybrid workers had gradually risen since March 2022, but those who only travel to work had declined. Workers with a 'degree or equivalent' qualification are ten times more likely to hybrid work than those with no qualifications, according to the ONS which added that the proportion of workers engaged in hybrid work increased with higher income bands.
