Jewellery chain Claire’s appoints administrators

The UK business of jewellery chain Claire’s has fallen into administration, putting 2,150 jobs at risk. The retailer today appointed insolvency practitioners from Interpath Advisory, a week after the chain’s parent group filed for bankruptcy protection in the US.

Claire’s, known for selling colourful necklaces and bracelets and offering ear piercing services, has 306 stores in the UK and Ireland, and 2,150 staff. It recorded a pre-tax loss of £4m on sales of £137m for the year to February 3, 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 it was in discussions with vendors and landlords about the future of its North American stores.

It 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.

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”.