Claire's collapses into administration with 300 stores and 2,150 jobs at risk

Claire's has collapsed into administration in the UK and Ireland, putting its more than 300 high street stores and 2,150 jobs at risk.

The high street tweens and teens accessories retailer said its stores remain open and continue to trade as normal, but its website has stopped taking orders.

Claire's - which is also known for its ear piercing services - is also no longer accepting refunds and any orders that have not yet been shipped will not be delivered.

Claire's has 278 stores in the UK and 28 in Ireland. Will Wright and Chris Pole from Interpath have been formally appointed as joint administrators.

It comes after Claire's - which has more than 2,700 stores globally - filed for bankruptcy in the US for the second time. Claire's staff were reportedly told not to let bailiffs enter stores to take anything, following its bankruptcy.

Claire's first filed for bankruptcy in 2018 after it was unable to repay a loan. Last month, Sky News reported that Claire’s was looking to potential sell or restructure its UK business. It comes after a high street chain launches 70% off closing down sales as 25 shops set to shut.

Hilco Capital, which owns Lakeland, had reportedly expressed interest in snapping up Claire's - but is said to have pulled out of the process.

Claire's has been controlled by former creditors including investment firms Elliott Management Corp and Monarch Alternative Capital LP since its 2018 bankruptcy.

Chris Cramer, chief executive officer, 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."

Will Wright, UK CEO 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 latest bankruptcy filings in the US showed that the business reported liabilities and assets of between $1billion and $10billion. It also showed that the company owed more than 25,000 creditors.

In the UK, Claire's is reported to have racked up £25million in losses over the past three years. In the year to March 2024, it reported a £4.7million loss, with turnover dipping to £137million.

The company has a $500million (£375million) loan due in December next year. Claire's said it has suffered in recent years with fewer people buying its products, and from online competition.