1,300 staff have lost their jobs
Hundreds of Claire’s UK stores have now closed(Image: Peter Dazeley, Getty Images)
Fashion accessories chain Claire’s has shut all 154 of its UK and Ireland outlets – including 5 in London – resulting in around 1,300 redundancies, according to administrators. Administrators Kroll confirmed the closures, announcing that employees have been “notified of redundancy”. Claire’s European stores, however, will continue to trade as normal.
The decision leaves the retailer’s 356 concessions unaffected, including numerous outlets within Asda stores, as well as its head office. This follows private equity owner Modella Capital appointing Kroll to manage 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. 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.”
The American parent company of Claire’s sought bankruptcy protection last year before being acquired, with the new proprietor licensing previous owner Modella Capital to operate the UK stores, reports the Daily Star.
The shutdowns follow Modella Capital’s decision to appoint Kroll to handle the administration proceedings earlier this year.
Modella, which also holds ownership of former WH Smith high street business TG Jones and Hobbycraft, pushed the brand into insolvency after it experienced “alarming” weak Christmas trading. The development represented the second administration for the retailer within just months, following Modella’s acquisition from administration in September the previous year. Claire’s had previously closed 145 outlets, resulting in approximately 1,000 redundancies, during the earlier administration.
Modella acknowledged in January that the company was facing difficulties after a challenging festive trading period. Both Claire’s and discount favourite The Original Factory Shop (TOFS) submitted notices of intention to appoint administrators earlier in the year.
At the time, a spokesperson for Modella stated: “Very sadly, we have had to initiate insolvency proceedings for The Original Factory Shop (TOFS) and Claire’s Accessories UK and Ireland. This has been a very tough decision. We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again.”
The spokesperson added: “In these circumstances, administration is the only option. In both cases, the legacy effects of trading prior to our ownership left them highly vulnerable. The climate on the high street remains extremely challenging and TOFS and Claire’s are not alone in experiencing difficulties.”
They continued: “This is borne out by recent Sensormatic statistics and other data sources suggesting an alarming drop-off in pre-Christmas footfall. A combination of very weak consumer confidence, highly adverse government fiscal policies and continued cost inflation is causing many established and much-loved businesses to suffer badly. It’s a simple fact that if retailers can’t make money, they risk having to close – and jobs across the country are lost.”
London branches of Claire’s Accessories
- Bexleyheath
- Bromley
- Croydon
- Enfield
- Ilford
- North Greenwich (O2)
- Stratford
- Wandsworth
- Wembley Park
- White City
- Wood Green
- Uxbridge
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