Claire’s Accessories has hired advisors to draw up a last-ditch rescue plan as it struggles to make a looming debt repayment.
The retailer is working with restructuring specialists at Interpath to sound out potential investors willing to salvage all or parts of its British operations, The Telegraph reported.
The firm’s appointment comes as the business, which has 300 stores in the UK, is facing an outstanding loan of £355m that must be repaid in December 2026.
Related Story
The retailer’s possible restructure and a potential sale could result in mass store closures and the accessories chain exiting certain markets completely to save on costs. Claire’s runs 2,300 stores across North America and Europe.
The company’s owner is working with advisers at Houlihan Lokey and Alvarez and Marsal on a deal for its American operations to seek bankruptcy protection for the second time in seven years.
Claire’s in the US filed for Chapter 11 bankruptcy back in 2018 as part of an attempt to restructure its debts.
The move resulted in the retailer falling into the hands of its biggest creditors, including Elliot Management and Monarch Alternative Capital, four years later.
Claire’s UK business has racked up losses totalling £25m over the last three years. According to recent accounts filed with Companies House, pre-tax losses narrowed slightly from £5.02m to £4.08m last year. Sales slipped 0.8% to £137m.
Click here to sign up to Retail Gazette‘s free daily email newsletter
