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High Street

Claire’s rubbishes ‘false’ CVA rumours

Jewellery and accessories chain Claire’s has denied claims that it is considering the closure of some of its UK stores.

A report by the Press Association (PA) suggested the group could be considering a company voluntary arrangement (CVA), which would include some store closures and a reduction on rents for remaining properties.

However, a spokesperson for Claire’s denied the claims and told Retail Sector that the group had “no plans for a CVA” and that “the PA story is false”.

In a statement CEO Ron Marshall said: “We have no plans for either a CVA or major store closures in the UK in the foreseeable future. Any stores we do close or open in the UK would be as part of our normal course of business.

“Recently emerging from the chapter 11 process in the US has enabled us to financially restructure, reducing our debt by $1.9bn and giving us access to $575m in capital, so we are now in a better position than ever to be able to invest in the business further, especially in our vitally important store portfolio as we continue to grow and expand the Claire’s business.”

The retailer’s US arm successfully completed a financial restructure of the business and exited bankruptcy on 12 October 2018. The group eliminated approximately $1.9bn (£1.4bn) of debt from its balance sheet and gained access to $575m (£435m) in new capital.

Marshall said at the time: “We committed at the beginning of this process that we would emerge as a healthier, more profitable company – and that is exactly what we have done.

“We look forward to being a stronger partner and employer thanks to the support of all the customers, employees, partners, landlords, and lenders who worked with us during this process.”

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