Claire’s, a popular accessories retailer for tweens and teens, has gone into administration in the UK and Ireland, jeopardizing over 300 high street stores and 2,150 jobs. While the stores are still open for business, the website has ceased taking orders. Additionally, refunds are no longer being processed, and pending orders will not be fulfilled.
With 278 locations in the UK and 28 in Ireland, Claire’s has appointed joint administrators, Will Wright and Chris Pole from Interpath. This development follows the company’s second bankruptcy filing in the US, where staff were instructed to prevent bailiffs from seizing any assets.
Having previously filed for bankruptcy in 2018, Claire’s faced challenges in repaying debts. Recent reports indicated the company was exploring options to sell or restructure its UK operations. Despite interest from potential buyers like Hilco Capital, known for owning Lakeland, no deal materialized.
The company’s recent financial disclosures revealed significant debts and liabilities in the US, affecting over 25,000 creditors. In the UK, Claire’s reported losses totaling £25 million over three years, with a £4.7 million loss in the year ending March 2024. A looming £375 million loan repayment deadline next year adds to the financial strain, exacerbated by declining sales and increased online competition.
Chris Cramer, Claire’s CEO, emphasized the decision’s necessity to safeguard the brand’s long-term value, expressing gratitude to employees, partners, and customers for their support. Will Wright of Interpath affirmed plans to maintain operations while exploring sale opportunities to secure a sustainable future for the beloved brand.
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