Claire's reportedly mulling sale as US tariffs take hold
Jewellery retailer Claire's is believed to be seeking a potential buyer for either part or all of the company as impact from US tariffs takes hold.
The retailer has reportedly appointed bankers at Houlihan Lokey Inc. to oversee the process, unnamed sources for Bloomberg have stated. According to the media outlet, a sale could include Claire's store networks in North America and Europe.
In a pitch sent to potential buyers and seen by Bloomberg, Claire's said it had recorded 1.3 billion dollars in sales last year, with its 1,537 stores in North America contributing around 720 million dollars to the sum.
The company, however, is facing a 500 million dollar loan repayment due in December 2026, and had chosen to defer interest payment on the debt to conserve cash, Bloomberg previously reported.
Claire's has been owned by former creditors since its bankruptcy in 2018. At the time, investment firms, including Elliott Management Corp. and Monarch Alternative Capital LP, stepped in to rescue the jewellers.
Alongside concerns over tariffs, Claire's has faced heightened competition in the market, and as such has continued to adjust and readjust its strategy in order to cater to the evolving demands of a Gen Z and Gen Alpha audience.
Such efforts involved introducing a new brand identity in 2023, as well as expanding shop-in-shop partnerships with department stores and retailers in the UK and US.
The company is currently being led in an interim capacity by Chris Cramer, who temporarily stepped into the helm position in June 2024, adding to his current dual roles of chief financial and operating officer.
FashionUnited has contacted Claire's with a request to comment.
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