Claire’s considers UK store closures after calling in advisers
News comes after US parent company emerged from Chapter 11 bankruptcy protection
Your support helps us to tell the story
As your White House correspondent, I ask the tough questions and seek the answers that matter.
Your support enables me to be in the room, pressing for transparency and accountability. Without your contributions, we wouldn't have the resources to challenge those in power.
Your donation makes it possible for us to keep doing this important work, keeping you informed every step of the way to the November election
Andrew Feinberg
White House Correspondent
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
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments