Claire’s Accessories has brought in restructuring firm Interpath Advisory to explore a possible sale or shake-up of its UK operations.
The move could lead to widespread store closures across the country.
The jewellery and fashion retailer currently operates around 280 stores in Britain. It is now seeking potential buyers for part or all of its UK business as it deals with growing financial pressures.
Industry sources suggest that up to a third of its UK shops may close under a rescue plan, Sky News reported.
Such a move would place hundreds of jobs at risk and mark a major shift for the long-standing high street brand.
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|The retailer faces a £355 million debt repayment deadline in December 2026
Claire's is facing a debt repayment of £355 million, due in December 2026. The company has also recorded losses of £25 million over the last three years.
However, recent accounts show some signs of improvement. Pre-tax losses narrowed from £5.02 million to £4.08 million last year. But sales fell slightly by 0.8 per cent to £137 million over the same period.
The company’s difficulties are not limited to the UK. Its American parent is reportedly considering filing for bankruptcy protection for a second time.
The retailer previously went through Chapter 11 proceedings in 2018 as part of earlier restructuring efforts.
In the US, Claire’s is working with investment advisers Houlihan Lokey and Alvarez and Marsal to explore further options.
The company is owned by former creditors Elliott Management and Monarch Alternative Capital, following its last financial overhaul.
Globally, Claire’s runs around 2,300 stores across North America and Europe. The problems in its UK arm are seen as part of wider financial troubles affecting the entire group.
Wikimedia Commons | Any restructuring or sale could result in extensive store closures across the High Street
Interpath Advisory will now lead efforts to find investors interested in acquiring parts of the UK business or potentially the entire chain.
Any deal is expected to focus on cost-cutting and could mirror other retail restructures that have led to significant store closures.
Banking sources have pointed to possible interest from retail investors, including Modella Capital and Gordon Brothers. Both have been involved in similar deals in the past.
PA | Claire's is seeking buyers for part or all of its UK business as it grapples with mounting financial pressures
Claire’s has been a familiar name on British high streets for decades.
The potential loss of dozens of stores would be a blow to many shopping centres where the brand has maintained a strong presence.
One retail industry figure said the closure of up to a third of Claire’s stores would have a visible impact on town centres.
As with other struggling chains, advisers are expected to focus on preserving the most viable parts of the business.
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