Claire's on brink of collapsing into administration with 281 stores at risk

Claire's has announced plans to file for administration, putting its 281 high street stores at risk.

The high street jewellery and accessories retailer has filed a Notice of Intention to Appoint Administrators (NOI) in the UK. Claire's has said its stores remain open and continue to trade as normal. Its website is also still taking orders.

Will Wright and Chris Pole from Interpath are expected to be formally appointed as joint administrators. It comes after Claire's - which has more than 2,700 stores globally - filed for bankruptcy in the US for the second time.

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Claire's staff were reportedly told not to let bailiffs enter stores to take anything, following its bankruptcy. Claire's first filed for bankruptcy in 2018 after it was unable to repay a loan.

Last month, Sky News reported that Claire’s was looking to potential sell or restructure its UK business. It comes after a high street chain launches 70% off closing down sales as 25 shops set to shut.

Hilco Capital, which owns Lakeland, had reportedly expressed interest in snapping up Claire's - but is said to have pulled out of the process.

Claire's has been controlled by former creditors including investment firms Elliott Management Corp and Monarch Alternative Capital LP since its 2018 bankruptcy.

Chris Cramer, chief executive officer, 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."

The latest bankruptcy filings in the US showed that the business reported liabilities and assets of between $1billion and $10billion. It also showed that the company owed more than 25,000 creditors.

In the UK, Claire's is reported to have racked up £25million in losses over the past three years. In the year to March 2024, it reported a £4.7million loss, with turnover dipping to £137million.

The company has a $500million (£375million) loan due in December next year. Claire's said it has suffered in recent years with fewer people buying its products, and from online competition.

Stuart Greenfield, UK and European Sales Director at Advanced Supply Chain, comments: “Part of Claire’s Accessories’ problems are that its supply chain isn’t working, as it has failed to adapt in fast-changing markets.

“The retailer has borne the financial impact of US tariff reforms on imports from China, eroding already tight margins on low-value goods. And even before tariff changes, Claire’s was struggling to compete with the enhanced value and range of products that online marketplaces offer consumers.

“Sourcing and supply chain strategies should have been flexed to address margin dilution and to diversify and expand supplier networks.

“Successful retail models must constantly satisfy shopper demand for choice, availability, convenience and cost. Agile supply chains are the backbone of this and critical to delivering efficiencies that protect margins.”