Major update on future of iconic high street chain with 281 shops as store closures loom
Claire's, the popular jewellery and accessories chain, is facing mounting financial troubles that could spell disaster for its UK high street stores.
1
The retailer, which has 281 stores across Britain, is scrambling to address a looming £355million debt repayment due in December 2026.
Advisers have been hired to look into ways to save the company.
Restructuring specialists at Interpath are seeking investors to salvage parts of the UK business, while American advisers are considering bankruptcy protection for the chain's US operations, according to The Telegraph.
The appointment of Interpath has sparked fears of widespread store closures and possible withdrawals from some countries as the company tries to cut costs.
Globally, Claire's operates over 2,300 stores and is well-known for its ear-piercing services.
Claire's UK arm has struggled financially, racking up £25million in losses over the past three years.
In the year to March 2024, it reported a £4.7million loss, slightly better than the £5million loss the previous year, with turnover slipping to £137million.
The company blames inflation, rising costs, and supply chain issues for its struggles.
It has also been hit hard by US tariffs on Chinese imports, as much of its low-cost merchandise comes from China.
Claire's was contacted for comment.
Why are so many shops going bust?
What's happening at Claire's?
This isn't the first time Claire's has faced financial difficulties.
The chain filed for Chapter 11 bankruptcy in the US in 2018 in a bid to restructure its debts.
It emerged years later under the control of creditors, including hedge funds Elliott Management and Monarch Alternative Capital.
The company is also reportedly exploring a sale of its North American and European operations, with bankers searching for potential buyers.
However, there's no guarantee a sale will go ahead, and for now, Claire's UK stores remain open and trading as usual.
Retail experts say Claire's is struggling to stay relevant in a competitive market.
Budget-conscious shoppers now turn to online platforms like for affordable jewellery and accessories.
Julie Palmer, partner at Begbies Traynor, said: "Claire's low-price offering is clearly not strong enough to win over its core customers – teens and young adults – as they now have access to a vast array of affordable and convenient products online through platforms like Amazon and Temu.
"So, with fewer reasons for its customers to visit their stores, the retailer has struggled to stay relevant."
Why is the retail sector struggling?
The retail sector has struggled in recent years due to the onset of online shopping and lockdowns during the coronavirus pandemic.
Higher inflation since 2022 has also hit shoppers' budgets while businesses have struggled with higher wage, tax and energy costs.
Last month, Polish owner Pepco Group sold Poundland to US investment firm Gordon Brothers for £1 after a downturn in trading.
The new owners are now asking the court for permission to close 68 stores and negotiate lower rents on others, with up to 82 more stores potentially shutting in the future.
Both Hobbycraft and The Original Factory Shop are also shutting branches as part of restructuring efforts.
Higher inflation since 2022 has also hit shoppers' budgets while businesses have struggled with higher wage, tax and energy costs.
The Centre for Retail Research has described the sector as going through a "permacrisis" since the 2008 financial crash.
Figures from the Centre also show 34 retail companies operating multiple stores stopped trading in 2024, leading to the closure of 7,537 shops.
RETAIL PAIN IN 2025
The British Retail Consortium has predicted that the Treasury's hike to employer NICs will cost the retail sector £2.3billion.
Research by the British Chambers of Commerce shows that more than half of companies plan to raise prices by early April.
A survey of more than 4,800 firms found that 55% expect prices to increase in the next three months, up from 39% in a similar poll conducted in the latter half of 2024.
Three-quarters of companies cited the cost of employing people as their primary financial pressure.
The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year.
It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year.
Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025."
Professor Bamfield has also warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.
"By increasing both the costs of running stores and the costs on each consumer's household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
41 minutes ago
- The Sun
Garden furniture set 25% off at Morrisons… but here's why shopper said ‘glad I didn't get there sooner'
ONE shopper has said they're glad they didn't get to a Morrisons sale any sooner after the retailer slashed the price of garden furniture. The customer timed their visit to coincide with a 25 per cent price cut on a garden furniture set for members signed up to its rewards scheme. 2 The Nutmeg Outdoor Sofa Set from Morrisons is now selling for £18 less than usual. That is, if you're signed up to Morrisons More Card scheme. The More Card scheme offers money off specific items at Morrisons, using the More App which shows offers. Members can also find printed coupons at the check out to use on price savings. And right now, the scheme can be used to grab a cracking outdoor sofa set for just £72. It's just in time for summer, as you can make full use of it straight away to your vitamin D fix in. The set consists of two single chairs, and a double sofa - perfect for hosting a get together with friends or family in the garden. One happy shopper on Facebook celebrated not buying the set any earlier, so she could make full use of the deal. She said: "Glad now I didn't manage to get to Morrisons sooner. "I got an extra 25% off with More Card, so I paid £54 - bargain!" I was so excited when I nabbed a £2.49 Morrisons Too Good To Go bag – but what I found inside made me feel sick Another happy punter who appears to have got there a bit sooner, added: "We got this a couple of years ago still going strong." This comes as Morrisons has launched a huge summer clearance sale on a range of garden products. An eager shopper who spotted the offer at her local Morrisons shared the deal on the Extreme Couponing and Bargains UK Facebook page. Other customers quickly expressed their excitement as they ran to make the most of the affordable prices. Some of the items on offer had even had their price slashed by 50 per cent. It included the Nutmeg Outdoor three-piece bistro set for £50, reduced from £100. The product comes with a table and two chairs featuring comfortable cushions, helping you get your garden summer-ready on a budget. If you're needing a more heavy-duty umbrella set up, they've also got a parasol base weight for just £35. Those looking to splash a bit more cash might be interested in Morrisons' hanging egg chair. For £95 - reduced from £140 - it's a great centrepiece for your garden. Now that your garden is well-equipped to host, it's time to stock up on barbecue supplies. For just £8 Morrisons are selling a convenient portable barbecue. Supermarket loyalty schemes - which has one? MOST UK supermarkets have loyalty schemes so customers can build up points and save money while they shop. Here we round up what saving programmes you'll find at the big brands. Iceland: Unlike other stores, you don't collect points with the Iceland Bonus Card. Instead, you load it up with money and Iceland will give you £1 for every £20 you save. Lidl Plus: Lidl customers don't collect points when they shop, and are instead rewarded with personalised vouchers that gives them money off at the till. Morrisons: The My Morrisons: Make Good Things Happen replaces the More Card and rewards customers with personalised money off vouchers via the app. Sainsbury's: While Sainsbury's doesn't have a personal scheme, it does own the Nectar card which can also be used in Argos, eBay and other shops. You need 200 Nectar points to save up £1 to spend on your card. You need to spend at least £1 to get one Nectar point. Tesco: Tesco Clubcard has over 17million members in the UK alone. You use it each time you shop and build up points that can be turned into vouchers - 150 points gets you a £1.50 voucher. Here you need to spend £1 in Tesco to get one point. Waitrose: myWaitrose also doesn't allow you to collect points but instead you'll get access to free hot drinks, and discounts off certain brands in store. 2
Times
42 minutes ago
- Times
Kemi Badenoch is right that the welfare system is a fiscal disaster
The leader of the opposition alerted the nation to an alarming statistic last week: 28 million people are working hard and paying taxes to support the livelihoods of another 28 million. Kemi Badenoch argued that Britain is becoming 'a welfare state with an economy attached', such is the vastness of uncontrolled spending on benefits. That might sound like hyperbole, but she has identified one of the most serious issues stifling growth and the country's prospects. Ms Badenoch's speech was her first notable economic intervention since she became the Conservative party leader last year, and one that was overdue. While few can question her success in campaigning for a national grooming gangs inquiry, or fighting for women's rights, she has had less success in articulating an alternative economic vision to that of the Starmer government or Nigel Farage's Reform UK. Her call for a return to a 'Protestant work ethic' articulated an important theme: the need for economic opportunity. Although the Tories bear some responsibility for the millions of Britons who are economically inactive, particularly in the wake of the Covid-19 pandemic, the party is the only one willing to state hard truths about the mess of the UK's labour market. Ms Badenoch argued that the word 'disabled' has lost its meaning, with one in four working-age people now classified under the term. With the health and disability benefits bill set to rocket to £100 billion by the end of the decade, she is right that the current situation cannot go on. • Give struggling 16-year-olds state-paid jobs, says key adviser The accusation that the welfare system makes it too easy for people to claim benefits is hard to dispute. So too is the danger that welfare is becoming a lifestyle choice. It is clear that radical reform, not mere tinkering, is required. According to the Centre for Social Justice think tank, a recipient of the highest level of sickness benefits earns £2,500 a year more than someone on the national living wage. It is unsurprising that some will therefore opt for this over a life of work. Ms Badenoch invoked the legacy of Lord Tebbit, the Thatcher-era minister who died last week, to argue that the Tories must remain the party of work. Acknowledging mistakes of the past, she said, 'people should do all that they can to be in work, that is the ethics that I want to be very clear about now'. The Tories are right to grasp this difficult issue, as their political rivals appear unwilling to. Ms Badenoch dismissed Mr Farage as an 'unserious' figure: 'Jeremy Corbyn with a pint and cigarette'. She would be wise not to underestimate his everyman appeal, something that does not come as naturally to her. Yet she is right that Reform is increasingly and unwisely tilting leftwards when it comes to public spending in its desire to appeal to disenchanted Labour supporters. After the debacle on the cuts to disability benefits, it is unlikely that the Starmer government will act decisively, or at all, when it comes to welfare reform. Despite the drumbeat from Labour MPs calling on the government to scrap the two-child benefit cap, this is precisely the opposite of what the prime minister should be considering. Instead he should heed the advice of Alan Milburn, former Labour health secretary, who cautioned against any effort to 'run away' from reform. He is right that the costs of sickness benefits are unsustainable, both for the economy and the state of society. There is an obvious gap in the political market that Ms Badenoch can fill: the cause of fiscal restraint. The Tories should never have given up their belief in a smaller state, but it is welcome to see them return to it. It is ever more likely that the UK is heading for a financial crunch this autumn, as Rachel Reeves's mishandling of the economy risks creating a vast fiscal black hole. The unsustainable welfare bill is at the heart of the problem and voters now appreciate that it must be tackled. The time for hard truths is fast approaching.
The Sun
an hour ago
- The Sun
Price of ice cream maker slashed as fans say ‘excellent' machine ‘makes it easy' during sweltering summer temps
IN the summer heat there's only one thing on everyone's mind - ice cream. And right on cue, there's a neat sale on an "excellent" ice cream machine. The Lakeland Cuisinart Solo Scoops Ice Cream Maker has just had 25% slashed off its price. This brings the cost down from £39.99 to £29.99 in the company's summer sale. This even matches the product's Prime Day Deal price on Amazon. This means ice cream making for families across the nation just got more affordable - as the tenner off makes the seemingly seasonal purchase that bit more tempting. There's even an extra saving to be made on the item for savvy deal seekers out there. Money saver website TopCashBack is offering a free £15 signup bonus. This bonus is accompanied by extra cashback on certain qualifying spends across thousands of retailers, which as luck would have it include Lakeland. When the sums are done, new TopCashback members can get the ice cream maker for the outrageously low price of just £14.20. The ice cream maker is not only compact, but can also produce small ice cream servings in just 25 minutes. It comes with a 3 year guarantee, and even features an ingredient funnel to add extra toppings like chocolate chips or chopped fruits. Rita Ora looks incredible as she strips off to thong bikini to enjoy an ice lolly by the pool There's even a neat recipe book included, so you'll have no trouble getting started. The Lakeland website adds: "Fancy fast homemade ice cream without the faff? "The Cuisinart Solo Scoops Ice Cream Maker makes it easy to whip up your favourite flavours at home without making a massive batch. "Whether you're craving classic vanilla, fruity sorbet, or a decadent chocolatey delight, this compact and clever machine whips up delicious homemade ice cream in just 25 minutes with minimal preparation. Customers have been heaping praise on the machine, with one customer saying: "Five star ice cream, five star machine - you won't get better. Another added: "It's a very impressive little ice cream maker." This comes after a top chef created a wild new potato ice cream topped with bacon. Michelin -trained Poppy O'Toole, 31, is touted the sweet-meets-savoury version and insists: 'It works!' The self-titled 'Potato Queen' of the internet mixes Maris Piper spuds with condensed milk, double cream, vanilla and salt to make the no-churn treat. She suggests adding pieces of maple bacon or crispy potato sticks to complete the offering. Poppy, who has 5.5 million internet followers, said: 'People might know me for my roasties, but now it's time for potato-based desserts to enter the chat. 'Sounds a bit wild, I know — but trust me, it works. I love showing how everyday ingredients can surprise you.'
