UK/IRELAND/USA. Claire’s, a specialist retailer with a traditionally strong and widespread airport presence, has sought administration in the UK and Ireland.
The company attributes the move to reduced footfall amid evolving retail trends, following its Chapter 11 bankruptcy filing in the US state of Delaware earlier this month.
The US-based retailer, with a presence in more than 2,700 stores across 17 markets, has filed for Chapter 11 for the second time since 2018, carrying US$690 million in debt.
Claire’s CEO Chris Cramer, through a statement issued by the company’s claims agent Omni Agent Solutions, said the decision is difficult, but a necessary one. He said, “Increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire’s and its stakeholders.
“We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”
Claire’s Canadian division also plans to initiate proceedings under the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice.
Financial advisory firm Interpath announced that Will Wright and Chris Pole have been appointed joint administrators for Claire’s Accessories UK Ltd, Claire’s European Services Ltd and Claire’s European Distribution Ltd as of 13 August.
With 306 stores throughout the UK and Ireland, including airports, the administration raises concerns for the jobs of over 2,150 employees.
Upon taking up their roles, the joint administrators will immediately and as a matter of priority contact all UK and Ireland employees to outline the impact of administration.
Interpath noted that the joint administrators will continue trading the companies while exploring options for the business, including a potential sale. Claire’s stores throughout the UK and Ireland will continue to operate normally, while online orders through the website have been suspended.
Interpath UK CEO Will Wright said: “Claire’s has long been a popular brand across the UK, known not only for its trend-led accessories but also as the go-to destination for ear piercing.
“Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the Company. This includes exploring the possibility of a sale which would secure a future for this well-loved brand.” ✈
