Claire’s UK arm is understood to be in talks with restructuring firms and could be the latest UK retailer to undergo a company voluntary arrangement (CVA) threatening hundreds of jobs.
According to the Press Association the accessories retailer, which trades from over 378 stores and 128 concessions across the UK, are in the preliminary stages of discussions with number of restructuring firms.
It is understood to be considering a number of options, including a CVA which would see it offload underperforming stores and plunge hundreds of staff into fear of redundancy.
The news comes on the same day Claire’s US arm announced its triumphant return after filing for a Chapter 11 bankruptcy
When the plans were announced the retailer confirmed that its European operations, including its 378 stores and 128 concessions across the UK, would not be affected by the bankruptcy filing.
Through a restructuring process Claire’s has reportedly wiped $1.9 billion (£1.44 billion) off its debt pile and has gained access to $575 million (£437 million) of additional capital.
It has now launched its Third Amended Plan of Reorganization, marking the end of its Chapter 11 process and says it is emerged as a “healthier, more profitable company.”
“Our renewed financial strength cements Claire’s position as one of the world’s leading specialty retailers of fashionable jewelry, accessories and beauty products for young women, teens, tweens and girls, and with our key growth initiatives already delivering value, we are well-positioned for long-term growth and success,” chief executive Ron Marshall said.
“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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