Claire's, the fashion accessories retailer with stores in Birmingham, Merry Hill and Walsall, has permanently closed all 154 of its standalone high street shops across the United Kingdom and Ireland. Administrators confirmed that approximately 1,300 employees will be made redundant as a result of the mass shutdown.
Administration and job losses
The closures come after private equity owner Modella Capital appointed Kroll to oversee the administration process earlier this year. A spokesman for Kroll stated: “As of April 27, all Claire’s standalone stores in UK and Ireland have ceased trading. All store employees have been advised of redundancy.”
This marks the second time the business has entered administration in recent months. Modella originally acquired Claire's from administration in September last year, but the brand was placed into insolvency again after experiencing “alarming” weak trading during the Christmas period.
Concessions and head office unaffected
The move does not affect the retailer’s 356 concessions, many of which are located inside Asda stores, nor its head office operations. The company will continue to trade through these outlets.
History and challenges
Claire's, known for its jewellery, clothing accessories and ear-piercing services, was founded in the United States and first launched in the United Kingdom in 1996. It quickly expanded across British high streets, including locations in the West Midlands such as Birmingham, Merry Hill and Walsall. However, the chain has faced increasing pressure from low-priced online competitors in recent years.
During the previous administration last year, Claire's had already shut 145 stores and cut around 1,000 jobs. The latest closures represent a complete exit from standalone retail in the UK and Ireland.
Future of store sites
Kroll’s spokesman added: “We understand an interested party is in discussion with a number of landlords with a view to taking new leases for some of the sites.” This suggests that some former Claire's locations may be reoccupied by other retailers in the future.
