Claire’s, the well-known fashion accessories and ear-piercing retailer, is on the brink of collapse in the UK and Ireland after announcing plans to appoint administrators, placing 2,150 jobs in jeopardy.
The company, which operates 278 stores in the UK and 28 in Ireland, has struggled with falling sales, mounting debt, and fierce competition from online giants such as Amazon, Shein, and Temu.
Filing for Administration Amid Heavy Losses
Claire’s has filed a notice of intention to appoint Interpath Advisory as administrator, which will review “all options” while stores continue trading. UK Chief Executive Chris Cramer said the move aims to protect the long-term value of the brand while exploring the “best possible path forward.”
The retailer’s UK arm has recorded £25 million in losses over the past three years, including a £4.7 million loss in the 12 months to March last year. It is also burdened with a $480 million (£355 million) loan due for repayment by December 2026.
Potential Store Closures and Sale Talks
Interpath confirmed it will aim to keep all stores operating while assessing options, including a potential sale. Reports suggest that up to one-third of UK stores may need to close for the chain to survive.
Earlier attempts to find a buyer for Claire’s UK and European business failed after potential bidders, including Hilco Capital, withdrew. Interpath continues to seek offers to secure the future of the brand, which also operates under the Icing jewellery and cosmetics label.
Declining Footfall and Online Competition
Founded in 1961, Claire’s has long been a fixture in UK shopping centres, famed for on-trend jewellery and ear-piercing services popular among teenagers. However, analysts say the brand’s high street presence has become a liability as retail footfall declines and consumer spending shifts to online platforms and social media-driven retailers.
Susannah Streeter of Hargreaves Lansdown noted that “having so many stores used to be great for brand recognition; now, brand awareness is driven by TikTok and Instagram feeds rather than store signage.”
Global Operations Under Pressure
Claire’s operates more than 2,750 stores in 17 countries across North America and Europe. Its US and Canadian divisions filed for bankruptcy earlier this month. The company previously entered bankruptcy in the US in 2018 before emerging seven months later after wiping $1.9 billion from its balance sheet.
