The Irish and British businesses of struggling jewellery chain Claire’s has fallen into administration, putting 2,150 jobs at risk.
The retailer formally appointed insolvency practitioners from Interpath Advisory on Wednesday, a week after the chain’s parent group filed for bankruptcy protection in the US.
Interpath had been recently tasked by the US parent company to find a buyer for the European operation but, according to reports from the UK, the company struggled to find a financial backer. One industry source said that as many as one-third of its shops might be closed under a restructuring programme.
Claire’s, known for selling colourful necklaces and bracelets and offering ear piercing services, has 306 stores in Ireland and Britain aimed at the teen and preteen market, and 2,150 staff. That includes 20 stores in Ireland.
RM Block
It recorded a pretax loss of £4 million on sales of £137 million according to its most recent results for the year to February 3rd, 2024.
Administrators at Interpath, which had been trying to sell the business, said shops will remain open for now as they assess options for the chain, including “exploring the possibility of a sale which would secure a future for this well-loved brand” shorn of its liabilities.
Customers will no longer be able to buy goods online.
The update comes after the wider Claire’s group, which operates 2,750 stores in 17 countries, applied for Chapter 11 bankruptcy protection in a Delaware court. The company last week said that it was in discussions with vendors and landlords about the future of its North American stores.
Claire’s previously filed for bankruptcy in 2018, exiting Chapter 11 in 2022. The Illinois-based group is owned by a group of investment firms, including Elliott Management and Monarch Alternative Capital. It has also had two failed attempts at a stock market IPO.
Last week, the group blamed “increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail” for the bankruptcy, as well as “debt obligations”.
The retailer’s trading difficulties are understood to have been exacerbated by uncertainty surrounding tariffs imposed on China by the US administration, which is likely to have seen its overheads increase substantially in recent months.
The parent company said it has between 25,001 and 50,000 creditors.
Claire’s Irish and British business is the second high-street brand to battle to maintain a presence on the high street in as many weeks. Fashion retailer River Island managed to avert administration after a court approved a restructuring plan last week that includes the closure of 33 of its 230 stores. – Copyright The Financial Times Limited 2025
