Claire’s, the popular tweens and teens accessories retailer, has fallen into administration in the UK and Ireland, jeopardizing over 300 high street stores and 2,150 jobs. Despite the administration, the stores are open for business, but online orders are currently suspended. Claire’s, renowned for its ear piercing services, is no longer offering refunds, and pending orders will not be fulfilled.
With 278 stores in the UK and 28 in Ireland, Will Wright and Chris Pole from Interpath have been appointed as joint administrators. This development follows Claire’s filing for bankruptcy in the US for the second time, where staff were instructed to prevent bailiffs from seizing goods.
Claire’s initial bankruptcy in 2018 stemmed from loan repayment challenges. Recent reports indicated the company was exploring options to sell or restructure its UK operations. Hilco Capital, the owner of Lakeland, had shown interest in acquiring Claire’s but withdrew from the process.
Formerly under the control of investment firms Elliott Management Corp and Monarch Alternative Capital LP, Claire’s CEO, Chris Cramer, emphasized that the administration decision is part of a strategic move to safeguard the brand’s long-term value. Interpath’s UK CEO, Will Wright, highlighted Claire’s popularity and expressed intentions to sustain operations while evaluating future options, potentially including a sale.
In the US, Claire’s reported liabilities and assets between $1 billion and $10 billion, with debts owed to over 25,000 creditors. In the UK, the company recorded £25 million in losses over three years, with a £4.7 million loss in the year ending March 2024, coupled with a revenue decline to £137 million.
Facing a looming $500 million loan repayment in December next year, Claire’s cited reduced consumer demand and online competition as contributing factors to its financial struggles.
