Major update on future of iconic high street chain with 281 shops as store closures loom

Scottish Sun

2 days ago

We explain why the chain is struggling
RETAIL HELL Major update on future of iconic high street chain with 281 shops as store closures loom
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A MAJOR update has been issued on the future of an iconic high street chain with 281 shops.
Claire's, the popular jewellery and accessories chain, is facing mounting financial troubles that could spell disaster for its UK high street stores.
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Globally, Claire's operates over 2,300 stores and is well-known for its ear-piercing services
Credit: Getty
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.