Claire's Closes All UK Stores, Over 1,000 Jobs Lost
Retailer ceases trading across all remaining locations as administrators confirm redundancies amid tough market conditions.
Image: Matt Weston / AI
Callum Smith
Claire's has closed all its remaining UK stores, resulting in over 1,000 job losses across the country.
Administrators at Kroll confirmed all remaining Claire's shops ceased trading on Monday, advising all store employees of redundancy.
Approximately 1,300 employees faced redundancy across the UK operations.
These closures followed private equity owner Modella Capital appointing Kroll to oversee the administration process for the accessories giant.
Claire's, a brand founded in the US, first established its UK presence in 1996, building a quarter-century legacy on British shores.
These closures do not impact the retailer’s 356 concessions or its head office operations; both continue to function.
Staff at Claire’s packed up final stock and equipment, with remaining outlets formally closing on Tuesday.
Talks continue to find a new owner for the Claire’s brand in the UK.
An interested party remains in discussion with landlords, aiming to secure new leases for some sites.
French businessman Julien Jarjoura attempts to assemble a rescue deal, aiming to acquire 50 UK stores to maintain the brand's presence.
The broader retail landscape faces immense pressure, a situation Sean Moran, a restructuring and insolvency partner at Shakespeare Martineau, observed.
The fashion and accessories industry has been overwhelmed by new competition from online retailers, increasing pressure on high street brands. These tough market conditions will affect other retail giants, predicting more struggles in the coming months for established names.
Moran noted the fashion and accessories industry has been overwhelmed by new competition from online retailers, increasing pressure on high street brands.
He also stated these tough market conditions will affect other retail giants, predicting more struggles in the coming months for established names.
Nicholas Found, head of commercial content at Retail Economics, stated Claire’s could not 'evolve fast enough' to compete with 'nimble online platforms' such as Temu and TikTok Shop.
This shift in consumer behaviour, moving from physical stores to digital marketplaces, represents a fundamental change in the retail sector.
Modella Capital attributed part of the reason for administration to low Christmas trading, which it described as 'alarming'.
A spokesperson for Modella stated they worked intensively to save both businesses, making last-ditch attempts.
However, neither had a realistic possibility of trading profitably again, the spokesperson confirmed.
Modella confirmed administration was the only option, citing the legacy effects of trading prior to their ownership.
They also stated tough retail conditions, including those from government policies, caused British businesses to 'suffer'.
Modella Capital added that government policy had caused a tough trading environment by raising staffing costs such as National Insurance Contributions.
A combination of very weak consumer confidence, highly adverse government fiscal policies, and continued cost inflation causes many established and much-loved businesses to suffer.
The climate on the high street remains extremely challenging, and TOFS and Claire’s are not alone in experiencing difficulties, Modella stated.
A combination of very weak consumer confidence, highly adverse government fiscal policies, and continued cost inflation causes many established and much-loved businesses to suffer, Modella stated.
Modella emphasized that if retailers cannot make money, they risk closure, leading to job losses across the country.
The challenges extend beyond the UK, with reports indicating the Claire's US arm also struggles, pointing to a wider systemic issue within the brand.