Claire’s UK is set to appoint administrators in the coming days, putting more than 2,150 jobs at risk, after its US parent filed for bankruptcy protection last week.
The fashion accessories chain has filed a notice of intention to appoint administrators at the High Court, a move designed to protect the business from creditor action while options for its future are explored.
Insolvency specialists at Interpath Advisory, which has been seeking a buyer for the retailer, are expected to handle the administration process.
All 278 UK stores and 28 in Ireland will continue to trade while Interpath “assesses options for the company”, including the possibility of a sale.
Interpath chief executive Will Wright said: “We will try to keep the stores open for as long as we can as we assess options for this well-loved brand.”
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Claire’s, which also trades under the Icing fascia, is owned by a consortium including Elliott Management and Monarch Alternative Capital. The UK business reported a pre-tax loss of £4m on sales of £137m in the year to 3 February 2024.
The group’s US operations filed for Chapter 11 bankruptcy in a Delaware court earlier this month, blaming increased competition, shifting consumer spending habits, the ongoing move away from bricks-and-mortar retail and debt obligations.
Earlier this week, reports emerged that Claire’s UK store managers had been warned bailiffs may arrive to recover debts, and that staff had been told to refuse entry and alert management.
Founded in 1961, Claire’s built its brand around affordable jewellery, hair accessories and ear piercing services, and at its peak was a staple in high streets and shopping centres for tweens and teens.
The notice of intention to appoint administrators comes just days after River Island narrowly avoided administration through a restructuring plan that will see it close 33 stores.
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