Claire's Accessories in 'last ditch' rescue plan ahead of looming £355m debt repayment
The high street retailer, which has 300 shops in Britain, has hired restructuring specialists Interpath to search for investors for all or part of its UK operations, according to The Telegraph.
The last-ditch plan comes ahead of a looming debt repayment on a $480million (£355million) loan which has to be repaid by December 2026.
In a bid to reclaim some costs, there are concerns a restructuring could lead to closures among its 2,300 stores across the world, and pull out of some countries completely.
At the same time, Claire's Accessories UK arm has racked up losses of £25million over the last three years.
In the year to March 2024, it fell £4.7million into the red, a slight fall from £5million in the previous period, while turnover dipped to £137million.
It has also struggled with increased US import costs as President Trump hiked tariffs on goods from China, where the majority of the items it sells come from, and competition from online retailers like Amazon.
It is the latest setback for Claire's Accessories after it filed for Chapter 11 bankruptcy in the US to restructure its debts.
In 2018, Elliot Management and Monarch Alternative Capital took control of its stores as former creditors.
And it is reported that it is now working with advisers at Houlihan Lokey and Alvarez and Marsal on a deal for its US operations to seek bankruptcy protection.
Claire's Accessories joins other British high street staples that are struggling with ballooning costs.
WH Smith agreed to sell its 480 stores to Hobbycraft owner Modella Capital and will rebrand to TGJones, while River Island recently announced 33 store closures blaming rising costs and customers shopping online.
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