Major high street retailer enters administration with hundreds of stores facing closure and thousands of jobs at risk
A major fashion accessories chain - Claire's - is entering administration in the UK, putting 2,150 jobs at risk.
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The US parent firm for Claire's said it has filed a formal notice to administrators from advisory firm Interpath.
The move will raise fears over the future of its 306 stores across the UK and Ireland.
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.
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“This includes exploring the possibility of a sale which would secure a future for this well-loved brand.”
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Claire’s attraction has waned, with its high street stores failing to pull in the business they used to.
“While they may still be a beacon for younger girls, families aren’t heading out on so many shopping trips, with footfall in retail centres falling.
“The chain is now faced with stiff competition from Tiktok and Insta shops, and by cheap accessories sold by fast fashion giants like Shein and Temu.
“Having so many stores across the UK, used to be great for brand recognition, now names are recognised from social media feeds not building fascia.
“This move to appoint administrators appeared to be an inevitable step for Claire’s UK business, after the company filed for bankruptcy yet again in the US, and restructuring proceedings get under way in its other markets.
“It will be a very worrying time for staff at its 280 stores who face this deep period of uncertainty as administrators work out the best path ahead for the company.
“It looks certain that more stores will close, given the liability the store footprint has become for the company.”