Fashion accessories chain Claire’s has filed a notice of intention to appoint administrators in the UK and Ireland at the High Court.
Its chief executive Chris Cramer described the decision as a “difficult” one to take and said its 278 shops in the UK and 28 in Ireland would remain open “while we explore the best possible path forward”.
Cramer was quoted when the firm filed for Chapter 11 bankruptcy in Delaware in the US earlier this month as blaming “increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail” for the firm’s impending collapse.
He also cited “debt obligations” and wider economic turmoil. A £375m loan is due to be repaid in December next year, according to reports.
Speaking on Wednesday, Cramer described the current environment as a “challenging period”.
The latest news puts 2,150 jobs at risk. Insolvency practitioners at Interpath Advisory have been trying to sell the business and expect to be appointed as administrators in the coming days.
Frasers Group snaps up eBuyer out of administration
Interpath chief executive Will Wright said they will “assess options for the company” once appointed, including a potential sale.
Claire’s recorded a pre-tax loss of £4m on falling sales of £137m for the year to 3rd February 2024.
The firm is controlled by former creditors from an earlier 2018 bankruptcy in the US, including investment firms Elliott Management Corp and Monarch Alternative Capital LP.
The wider group has 2,750 stores in 17 countries.
THG Commerce secures TikTok Shop partner status
The post eCommerce blamed as Claire’s set for administration appeared first on BusinessCloud.
