A major high street retailer's owner has filed for bankruptcy, placing 280 stores at risk of closure, according to analysts.
Jewellery chain Claire's Accessories is understood to be struggling to find a buyer for its operations in the UK, in a development that places thousands of retail jobs on the line.
Advisors to Claire's Inc, which filed for Chapter 11 bankruptcy protection in the US earlier today, are not expected to land a solvent bid for its UK operation.
While the exact number of UK employees is unknown, insiders have shared the company has around 5,000 workers across Europe, including Britain.
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A major UK retailer could leave the high street
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Retail executives told Sky News that the business is unlikely to file for administration in the UK this week, however this is likely to happen sometime later this month.
It is understood that prospective bidders for Claire's British arm, including the Lakeland owner Hilco Capital, have pulled away from making offers in recent weeks.
An insolvency practitioner has cited the extend of the business's fiscal challenges as being a deterrent for a deal being made.
Restructuring firm Interpath Advisory was brought on by the company to find a buyer for the UK business, as well as its larger European portfolio.
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The high street has been hit with store closures in recent months | PAHowever, one retail industry boss told reporters that as many as one in three stores in the UK could be shut down to save the rest of the chain in Britain.
As it stands, Claire’s operates 2,750 stores across 17 countries with around 280 stores in the UK.
Based on the new bankruptcy filings, the business reported liabilities and assets of between $1billion and $10billion.
Furthermore, the filings also revealed that the company owed more than 25,000 creditors.
The jewellery store chain is owned by a group of firms, including investment giant Elliott Management, who were creditors when the retail firm first faced insolvency seven years ago.
Despite the recent trend of store closures, the number of shops shutting down in 2024 fell to 12,804, which is the equivalent of 35 per day and the second lowest in 10 years.
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Shops are disappearing from the high street | PAAs well as this, there was 9,002 store openings last year, coming to an average of 25 per day.
Jacqueline Windsor, the head of Retail at PwC UK, said: "Our latest Store Openings and Closures insights indicate a cautious optimism for the retail sector.
"This creates opportunities for stakeholders to seize momentum and unlock growth by tackling market challenges and capitalising on evolving consumer behaviours.”
"Whether it be investing in technology to enhance the consumer experience or drive productivity improvements, 2025 could be a big year for retailers who are smart about how they play in the market."