Worry for Claire’s accessories shop workers as company directors call in administrators
Claire's accessories is poised to appoint administrators, it was confirmed today, leaving the fate of the fashion brand's many stores in the Midlands hanging in the balance.
Shop workers at the high street accessories outlets face an uncertain time ahead following the news that Claire's Accessories UK Ltd has filed a Notice of Intention to Appoint Administrators.
The PA news agency reported 2,150 jobs are at risk.
A statement issued on behalf of Claire's said the company's directors have taken the step in an effort to protect the business and its stakeholders while options for the future continue to be evaluated.
It said Will Wright and Chris Pole from Interpath are expected to be formally appointed as joint administrators to Claire's UK in the coming days.
Chris Cramer, CEO of 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.
"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."
Mr Cramer said in an earlier statement that "increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with current debt obligations and macroeconomic factors" had all contributed to the current position.
Claire’s runs 2,750 stores across 17 countries. It has around 306 stores in the UK and Ireland.
The accessories brand has a host of outlets in the West Midlands including in Wolverhampton, West Bromwich, Walsall, Merry Hill, Birmingham New Street, Birmingham’s Bullring, Stafford, Hanley, Sutton Coldfield, Solihull, Resorts World Birmingham and Lichfield. It also has branches in Shropshire in Telford and Shrewsbury.
Claire's UK stores will remain open and continue to trade after the administrators are appointed.
The retailer said "store employees will remain in their positions and customers can continue to shop in-store as usual".
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 filing applies exclusively to Claire's UK and does not affect operations in markets beyond the UK and the Republic of Ireland although the news comes just a week after the US parent business of the fashion accessories and jewellery business filed for bankruptcy in a court in Delaware. Filings in the US showed the business reported liabilities and assets of between 1 billion dollars and 10 billion dollars. It also showed the company owed more than 25,000 creditors.
It was the second time the group had declared bankruptcy, having first filed in 2018 after it was unable to repay a loan. The group saw its finances improve after wiping around 1.9 billion dollars (£1.4 billion) off its balance sheet in a refinancing but it has come under pressure from recent weak consumer demand and supply chain uncertainty.
In Canada, Claire's Stores Canada Corp is proceeding under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice. Separate proceedings are also already underway in Germany and Austria.
