Claire’s, a popular accessories retailer for tweens and teens, has entered administration in the UK and Ireland, endangering over 300 high street stores and 2,150 jobs. Although the physical stores are still open and operating normally, the online platform has ceased accepting orders. Claire’s, renowned for its ear piercing services, is no longer processing refunds and unshipped orders will not be fulfilled.
With 278 stores in the UK and 28 in Ireland, Claire’s appointed Interpath’s Will Wright and Chris Pole as joint administrators. This move follows the company’s second bankruptcy filing in the US, where staff were instructed to prevent bailiffs from seizing any assets. Claire’s initial bankruptcy in 2018 stemmed from loan repayment issues. Recently, there were talks of selling or restructuring the UK business.
Despite interest from Hilco Capital, the potential buyer of Lakeland, the acquisition did not materialize. Since the 2018 bankruptcy, Claire’s has been under the control of former creditors, including Elliott Management Corp and Monarch Alternative Capital LP. Chris Cramer, the CEO, emphasized the decision’s significance in safeguarding Claire’s long-term value and expressed gratitude to employees, partners, and customers.
Will Wright from Interpath highlighted Claire’s popularity in the UK and plans to operate stores while exploring future options, potentially through a sale. The US bankruptcy filings revealed substantial liabilities and assets, with over 25,000 creditors. In the UK, Claire’s faced £25 million in losses over three years, with a £4.7 million deficit in the year ending March 2024. The company also faces a £375 million loan repayment due in December next year, attributing its struggles to declining sales and online competition.