Claire’s, a popular retailer of accessories for tweens and teens, has entered administration in the UK and Ireland, endangering over 300 stores on the high street and 2,150 jobs. While the physical stores are still operational, the company’s website has ceased accepting new orders. Additionally, Claire’s has halted refunds and will not fulfill orders that have not yet been dispatched.
With 278 stores in the UK and 28 in Ireland, the company appointed joint administrators, Will Wright and Chris Pole from Interpath. This move follows Claire’s previous bankruptcy filing in the US, where staff were instructed to prevent bailiffs from seizing assets after the bankruptcy declaration.
Claire’s first faced bankruptcy in 2018 due to loan repayment challenges. Recent reports indicated the company’s intention to sell or restructure its UK operations. Hilco Capital, the owner of Lakeland, expressed initial interest in acquiring Claire’s but later withdrew from the negotiation process.
Former creditors, including investment firms Elliott Management Corp and Monarch Alternative Capital LP, have controlled Claire’s since its 2018 bankruptcy. Chris Cramer, the company’s CEO, emphasized that the decision was made to safeguard Claire’s long-term value. Will Wright of Interpath expressed commitment to keeping the stores operational while exploring potential sale opportunities.
In the US, Claire’s reported liabilities and assets ranging from $1 billion to $10 billion, with over 25,000 creditors. In the UK, the company accumulated £25 million in losses over three years, with a reported loss of £4.7 million in the year ending March 2024. Claire’s faces a significant £375 million loan repayment due in December next year, attributing its financial struggles to declining sales and online competition.
