Claire’s Accessories, which has 280 stores in the UK, is facing an uncertain future
Claire’s Accessories is facing an uncertain future on UK high streets as its US parent company has filed for bankruptcy. The US-based fashion accessories and jewellery business, Claire’s, has lodged a Chapter 11 bankruptcy filing in a Delaware court, according to recent documents.
This marks the second time the group has declared bankruptcy, having first done so in 2018 when it was unable to repay a loan. After wiping around £1.4 billion off its balance sheet in a refinancing move, the group saw its finances improve but has recently been under pressure due to weak consumer demand and supply chain uncertainty.
Claire’s operates 2,750 stores across 17 countries, with approximately 280 stores in the UK. The latest bankruptcy filings revealed that the business reported liabilities and assets of between 1 billion dollars and 10 billion dollars, and owes more than 25,000 creditors.
Chris Cramer, CEO 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. We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.
“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.”
Claire’s retail stores in North America will remain open, it said, but there has not yet been any detail on what it means for the UK. The retail firm is owned by a consortium of companies, including investment behemoth Elliott Management, who were creditors when the company first faced insolvency seven years ago.
Last month, Sky News reported that Claire’s was working with advisers from Interpath to explore a potential sale or restructuring of its UK business. The report suggested that a sale deal could lead to store closures across the UK.
It was also reported that Lakeland owner Hilco is among those considering a takeover deal for Claire’s’ UK operations.