Claire’s to close remaining UK stores on Tuesday with more than 1,000 job losses | Retail industry
Jewelery and accessories chain Claire’s is closing its last UK stores on Tuesday as more than 1,000 people lose their jobs, ending three decades on Britain’s high streets.
Sources said staff at Claire’s, which had 154 stores when it collapsed in January, had been asked to collect final stock and equipment, with the remaining outlets set to officially close on Tuesday following a succession of waves of closures in recent weeks.
Managers at Kroll confirmed that all remaining stores ceased trading on Monday and “all store employees have been informed of the redundancies”.
The move does not affect the retailer’s 356 franchises, including most Asda stores and head offices.
Negotiations are thought to be ongoing to find a new owner for the Claire’s brand in the UK, with French entrepreneur Julien Jarjoura, who controls the brand in several European countries.
Claire’s collapsed into administration in January, just a few months after nearly half the chain (154 stores) was rescued by Modella Capital in August.
The deal saved about 1,300 jobs at the time. The 145 branches that Modella did not purchase were closed by managers in late November.
Kroll said 15 of the remaining 154 stores closed in March, and more than 100 people, including the head office, were laid off while they tried to find a buyer.
He said on Monday: “We understand that an interested party is in talks with some landlords to obtain new leases for some areas.”
The brand’s future in the UK is uncertain. Claire’s UK website is already “paused” Customers cannot purchase products this way.
The jewelery and ear piercing retailer’s UK arm has been struggling as sales have fallen amid competition from online retailers such as Amazon and increased sales via social media such as TikTok.
US-based Claire came to the UK in 1996 with the purchase of accessories chain Bow Jangles.
According to local newspaper reports, stores including Cheshire Oaks, Sutton Coldfield, Stockport, Watford and Bangor have closed in recent weeks, while Swindon closed last weekend. Shops in Romford, Oxford and Chester were also reportedly plastered with closure signs.
The UK arm’s difficulties increased after Claire’s branch in the US and Canada filed for bankruptcy for the second time in seven years.
Founded in Chicago in 1961, Claire’s has become a fixture in British shopping centers and high streets since the 1990s. The group, which operates more than 2,750 stores in 17 countries in North America and Europe, has become especially popular among young people.
In a report published in March, Kroll said it did not expect to pay unsecured creditors including suppliers, landlords and staff who were collectively owed £10.6 million. He added that Modella, which had secured debt of £5.5 million, was likely to receive at least some cash.
Modella is also expected to begin a major restructuring of TG Jones, the former high street division of WH Smith which it bought less than a year ago, by mid-May.
Sources said up to 100 of TG Jones’ 456 stores could close under a plan called “shutdown,” a bankruptcy procedure that requires court approval. Under the terms of its agreement with WH Smith, Modella agreed not to restructure TG Jones for a year.
But sources said this was likely to start before the deadline at the end of June as “the need is great” and there are concerns the business could become insolvent.
One source said stores with a Post Office were probably “relatively sacrosanct” as they were harder to close in the face of political interests and performed better due to regular footfall.
Difficulties at TG Jones emerged following the collapse of Modella-owned Claire’s and The Original Factory Shop in January. The Hobbycraft chain also closed several stores last year as part of its restructuring.
The Original Factory Shop chain, which had 140 sales points and employed 1,200 people at the time, went into administration under the leadership of Interpath in January and closed all remaining stores on April 4.
