Accessories chain Claire’s is struggling to attract potential buyers for its British high street operations.
The retailer, which filed for Chapter 11 bankruptcy in the US today (6 August), is not expected to secure a bid for its 300-stores business in the UK, Sky News reported.
Sources told the publication that a filing for administration this month has become increasingly likely given the outlook.
Related Story
It is understood that prospective bidders, which included Lakeland owner Hilco Capital, have pulled out of the process given the scale of the chain’s challenges.
Claire’s US owners have been working with Interpath Advisory since last month to explore a sale and possible restructuring options, amid mounting cost pressures and debt concerns.
The business is facing a £355m repayment, due in December 2026, and has been navigating challenging market conditions that impacted sales and profitability.
Claire’s UK sales fell slightly last year to £137m, while pre-tax losses narrowed from £5.02m to £4.08m, according to accounts filed with Companies House.
Interpath Advisory declined to comment.
Click here to sign up to Retail Gazette‘s free daily email newsletter
