Claire’s, a popular accessories retailer for tweens and teens, has gone into administration in the UK and Ireland. This move has put over 300 high street stores and 2,150 jobs at risk. Despite this, the stores are currently open and operating normally, but the website is not accepting new orders.
The company, renowned for its ear-piercing services, is no longer processing refunds and will not deliver any pending orders. The administration process has been overseen by joint administrators Will Wright and Chris Pole from Interpath. Claire’s has a total of 278 stores in the UK and 28 in Ireland.
This development follows Claire’s filing for bankruptcy in the US for the second time, with over 2,700 stores globally. The company faced financial challenges after its initial bankruptcy in 2018 due to a loan repayment issue. Recent reports indicated that Claire’s was exploring options to sell or restructure its UK operations amidst mounting financial difficulties.
Hilco Capital, the owner of Lakeland, had shown interest in acquiring Claire’s but withdrew from the process. Since its bankruptcy in 2018, Claire’s has been under the ownership of former creditors, including investment firms Elliott Management Corp and Monarch Alternative Capital LP.
Chris Cramer, Claire’s CEO, expressed regret over the situation but emphasized the decision’s importance in safeguarding the brand’s long-term value. Will Wright, UK CEO at Interpath, highlighted Claire’s popularity in the UK and outlined plans to explore all options, including a potential sale to secure the brand’s future.
Financial records revealed that Claire’s reported liabilities and assets between $1 billion and $10 billion in the US, with over 25,000 creditors. In the UK, the company recorded losses of £25 million over the past three years, with a reported £4.7 million loss in the year ending March 2024. Claire’s faces a significant loan repayment of $500 million (£375 million) due next year, attributing its financial struggles to declining sales and online competition.