Claire’s on brink of collapse, 2,150 jobs at risk
Register to get 1 more free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
Claire’s is set to appoint administrators in the UK as the jewellery retailer nears collapse, with around 2,150 jobs at risk, the BBC has reported.
Interpath Advisory will be appointed as administrator, and will “assess options for the company” while all stores continue trading.
They will seek a potential rescue deal for the chain, which has 278 stores in the UK and 28 in Ireland.
It comes as Claire’s UK arm reported cumulative losses of £25m over the past three years. Accounts for the year to March 2024 show a loss of £4.7m, slightly narrower than £5m the previous year, on turnover of £137m.
Directors at the retailer attributed its performance to inflation, and unfavourable currency rates, labour supply and transportation capacity, which have collectively increased operating and product costs.
The wider group has also faced rising import costs from tariffs imposed during US president Donald Trump’s trade war, as well as growing competition. This is because much of Claire’s low-cost merchandise is sourced from China.
Earlier this month, the group filed for bankruptcy in the US, where the firm said trade was hit by a shift away from bricks-and-mortar shops. It also had $690m (£508m) in debt.
Claire’s CEO Chris Cramer said: “This decision, while difficult, is part of our broader effort to protect the long-term value of Claire’s across all markets. In the UK, taking this step will allow us to continue to trade the business while we explore the best possible path forward.
“We are deeply grateful to our employees, partners and our customers during this challenging period.”
Will Wright, UK chief executive at Interpath, added: “Claire’s has long been a popular brand across the UK, known not only for its trend-led accessories but also as the go-to destination for ear piercing.
“Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company. This includes exploring the possibility of a sale which would secure a future for this well-loved brand.”
