Thousands of jobs are at risk after major accessories retailer Claire’s announced it was set to appoint administrators.
Around 2,150 jobs could be at risk. The fashion giant has 278 stores in the UK and 28 in Ireland, but it has been struggling with falling sales and fierce competition.
Administrators Interpath will "assess options for the company" as all the shops continue trading for the foreseeable, Claire’s said.
“This decision, while difficult, is part of our broader effort to protect the long-term value of Claire's across all markets," Claire’s CEO Chris Cramer said.
“In the UK, 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 our customers during this challenging period.”
Administrators are set to seek a potential rescue deal for the chain, which has seen sales tumble in the face of recent weak consumer demand.
Will Wright, UK chief executive at Interpath, 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.”
The US-owned company filed for bankruptcy in the US last week. It listed both its assets and liabilities in the $1 billion to $10 billion range in its Delaware filing.
Executives cited a perfect storm of challenges contributing to the company’s financial strain. One of the most pressing issues is the declining demand from younger shoppers.
This is especially Generation Alpha, who increasingly prefer online fashion experiences tied to social media platforms rather than traditional mall-based retail.
Claire’s is grappling with mounting pressure from fast-fashion and ultra-low-cost online retailers such as Shein, Temu, Amazon, and TikTok Shop.
These digital-first competitors are able to quickly respond to trends and offer products at prices traditional retailers struggle to match.
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