More than 2,000 jobs are at risk after Claire’s UK entered administration, a week after its American parent company filed for Chapter 11 bankruptcy protection.
The accessories and ear-piercing chain has appointed Will Wright and Chris Pole of Interpath Advisory as joint administrators for Claire’s Accessories UK Ltd, Claire’s European Services Limited, and Claire’s European Distribution Limited.
The company said the move was designed to “protect the business and its stakeholders” while it considers future options. Chief executive Chris Cramer said the UK arm would continue trading during the process: “Taking this step will allow us to continue to trade the business while we explore the best possible path forward. We are deeply grateful to our employees, partners and customers during this challenging period.”
Interpath’s Wright said administrators would aim to keep stores operating “as a going concern” while exploring a sale to secure the brand’s future.
Founded in Chicago in 1961, Claire’s operates over 2,750 stores in 17 countries, plus franchise outlets in the Middle East and South Africa. In the UK and Ireland, it runs 306 shops and employs 2,150 people.
The retailer has struggled in recent years with shifting consumer habits, the rise of online competitors such as Shein and Temu, and tariffs imposed by the Trump administration. Claire’s also filed for bankruptcy in 2018 before being taken over by Elliot Management Corporation and Monarch Alternative Capital, which eliminated $1.9bn in debt.
According to Sky News, potential buyers for the UK arm include Hilco Capital, owner of Lakeland, though sources say bidders have been cautious due to the scale of the company’s financial difficulties.
Cramer cited “increased competition, consumer spending trends, and the ongoing shift away from brick-and-mortar retail” as key factors behind the administration, alongside debt obligations and wider macroeconomic pressures.
