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Claire’s considers UK store closures after calling in advisers

News comes after US parent company emerged from Chapter 11 bankruptcy protection

Caitlin Morrison
Monday 15 October 2018 09:58 EDT
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Death of the UK high street: Retailers gone since 2008

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Claire’s could be the latest UK retailer to close stores after calling in advisers to assist with a potential restructuring.

The accessories chain is believed to be considering a company voluntary arrangement (CVA), which would be used to cut under-performing branches and could put hundreds of jobs at risk.

Claire's has more than 350 stores in the UK and dozens of concessions, according to its most recent accounts.

The news comes as the brand’s US parent company emerged from Chapter 11 bankruptcy protection, which it filed for earlier this year.

The US company restructured almost $2bn (£1.5bn) of debt, and chief executive Ron Marshall said Claire's had emerged as a "healthier, more profitable company" after gaining access to $575m in new capital.

Claire's has previously stressed that its European operations would not be affected by the American business, and its global subsidiaries were not part of the Chapter 11 filing.

If the UK store closures go ahead, Claire’s will join a long list of UK retailers forced to downsize over the past year.

Some of the biggest names on the high street have announced plans to shut branches, including Marks & Spencer, Mothercare and Homebase, while department store chain House of Fraser collapsed into administration in August.

Meanwhile, Debenhams is currently trying to come up with a restructuring plan, after issuing three profit warnings and making a series of job cuts so far this year.

Additional reporting by newswires

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