Claire’s, the fashion accessories chain once beloved for ear piercings and trend-led products, has collapsed into administration in the UK and Ireland, putting more than 2,150 jobs at risk.

The retailer appointed Interpath’s Will Wright and Chris Pole as joint administrators for its UK and European Services businesses on 13 August, after failing to secure a buyer for the chain.

It comes just days after the business warned store managers bailiffs may turn up to recover debts following the collapse of its US business, which filed a Chapter 11 bankruptcy last week.

So where did it all go wrong for the Birmingham-based retailer, which trades from 306 stores?

Why teens turned away

Emily Salter, lead retail analyst at GlobalData, explains that a fundamental issue has been Claire’s declining relevance with its core demographic.

“Claire’s has lost relevance in recent years as the market for accessories targeted at children and teenagers has shrunk, with the tastes of many teenagers aligning with that of adults,” she said.

“This has manifested in teenagers seeking more classic styles and switching to retailers targeting all ages, from those at the value end of the market like Primark to more premium players such as Astrid & Miyu, with teenagers trading up to more longer-lasting pieces.”

“Influencer culture and social media has been key to this, with young consumers being exposed to the same fashion trends as adults.”

Salter also highlights the competitive pressures from online fast-fashion platforms.

“Claire’s has also been one of the victims of the meteoric rise of Shein. For those who want to purchase accessories more tailored to younger consumers, Shein offers a huge amount of choice and lower prices, while Claire’s stores will feel outdated to digitally native Gen Alpha shoppers. Shein also has the upper hand in being more able to keep up with trends that young consumers see on social media.”

Stores no longer spark joy

While product relevance was a key issue, experts also point to the in-store experience as a factor in Claire’s decline. Hannah Partridge, client services director at creative design agency Seen Studios, which works with brands including Dr Martens, Jimmy Choo and Nike, says Claire’s stores no longer resonate with shoppers.

“Claire’s accessories lost its magic because, ultimately, it never grew up with its audience. Once the go-to rite of passage for tweens getting their first pair of earrings, Claire’s stores are now outdated, and the experience feels more like a ‘jumble sale’ in a retail landscape that now worships curation, premium feel, and Instagram-worthy experiences.

“In a world of fast-moving microtrends, Claire’s floods its stores with short-lived fads, making the brand feel disposable rather than aspirational.”

Partridge adds that younger consumers have high expectations when shopping for beauty and jewellery.

“Take for example SpaceNK which recently launched a flagship in London, spotlighting interactivity and discoverability, or jewellery retailer Astrid & Miyu with its sleek design, strong brand voice, and community engagement.

“Claire’s may not be as premium as these retailers, but its audience still want to feel like they are experiencing something worthwhile and exclusive.

“It is a huge loss to the high street and employees’ jobs if Claire’s is gone and I have high hopes for a recovery or a sale, but it will need a brand refresh. Claire’s needs to evolve into the coming-of-age hub for tweens, a space that feels premium to youngsters and reassuring to parents. Gen Z and Gen Alpha are trend-hungry, but we need to remember they can be brand-loyal but only when a store feels grounded in a clear identity.”

Mounting financial strain

The company has been under growing financial pressure in recent years. The UK business posted a pre-tax loss of £4m in the year to February 2024 and faces an outstanding loan of £355m due in December 2026.

Michael Lynch, insolvency and restructuring specialist at DMH Stallard, points out that UK operations were always at risk once the US business entered bankruptcy.

“Given that Claire’s in the US filed for bankruptcy in the US, it comes as little surprise that Claire’s UK business is also in distress. Stakeholders and lenders have presumably exhausted viable refinance and solvent restructuring options.”

“Should Claire’s enter administration, and dependent on the purpose of the administration, the administrators could sell the underlying company as a going concern or sell its business and assets, thereby saving potential job losses.

“The recent press release of an impending collapse, with a quote from prospective insolvency practitioners, will allow interested parties to engage in any sale process.”

A struggle reflected across retail

Claire’s struggles mirror wider pressures on UK high street retailers, from online competition to social media-driven trends.

Platforms like Shein, Amazon and shoppers’ growing preference for curated, Instagram-ready experiences have left traditional chains vulnerable.

Some retailers, like River Island, have been able to navigate these pressures: last week it secured High Court approval for a restructuring plan, closing 33 UK stores and cutting rents on 71 more, backed by £54m in new funding.

Claire’s, however, appears to have exhausted refinancing and restructuring options, leaving administration as the next step.

What’s next?

Administrators Wright and Pole from Interpath have been appointed to oversee the UK and European services businesses.

“This decision, while difficult, is part of our broader effort to protect the long-term value of Claire’s across all markets,” Claire’s CEO Chris Cramer said.

“In the UK, taking this step will allow us to continue to trade the business while we explore the best possible path forward.”

While stores will continue to operate as usual in the short term, customers are no longer able to buy items online or seek refunds for previous purchases, and orders that have not been dispatched are expected to be cancelled.

Over the coming weeks, the administrators will assess options for the company, including the possibility of a sale that could secure a future for the brand. Analysts and industry insiders agree that any recovery will require Claire’s to modernise its product offering, refresh its stores, and rebuild its connection with trend-savvy young consumers.

Salter sums up the challenge: “Claire’s has to navigate not only financial pressures but also a cultural shift in how its audience shops. Without evolving its brand, experience, and offering, it risks remaining out of step with the very customers that once made it a high street staple.”

Click here to sign up to Retail Gazette‘s free daily email newsletter