Claire's Accessories Filed For Bankruptcy Twice: Are Stores Closing Down For Good?

Claire's Accessories has filed for bankruptcy for the second time in seven years, raising fears over the future of its high street stores in the UK and Ireland.

The retailer has entered administration in Britain while also seeking Chapter 11 protection in the US, putting more than 2,000 jobs and hundreds of stores at risk. The move comes amid falling sales, high inflation and growing competition from online rivals.

UK and Ireland Operations in Administration

Claire's Accessories UK Ltd, which operates 306 stores across the UK and Ireland, has gone into administration, affecting around 2,150 staff, according to Reuters. Administrators from Interpath Advisory, led by Will Wright and Chris Pole, are keeping stores open for now, but online orders have been cancelled and refunds delayed while the company's future is reviewed.

Possible options under consideration include a sale of the UK business, store closures or a restructuring. No formal offers have yet been announced, the Financial Times reported.

Another Bankruptcy Filing in the US

In the US, Claire's has entered Chapter 11 bankruptcy proceedings for the second time, citing debts of nearly £368 million (approximately $500 million), according to NBC News. Chief executive Chris Cramer pointed to inflationary pressures, falling footfall and competition from fast-fashion platforms, BBC News reported.

The company previously emerged from bankruptcy in 2018 but now plans to close around 700 US stores, including its Icing brand, as well as 300 concession outlets inside Walmart, AInvest reported. While stores remain open during the restructuring, analysts warn that a full liquidation is possible if no buyer is found.

A Brand With A Long UK History

Founded in the US in 1961, Claire's expanded into the UK market in the 1990s through its acquisition of the Bow Bangles chain. At its peak, the retailer operated more than 350 stores across the country.

It became popular for its affordable jewellery, seasonal collections and ear-piercing service, which has been a coming-of-age experience for many teenagers. The brand claims to have carried out more than 100 million piercings worldwide, ABC News reported.

Claire's financial troubles come amid a series of recent high street retail failures, including Wilko in 2023, Debenhams in 2021 and The Body Shop's UK arm entering administration in 2024.

What Happens Next?

Retail experts say the future of Claire's will depend on attracting new investment and adapting its business model. CNBC reported that for many repeat bankruptcy filers, 'the end often comes via liquidation... with some online presence continuing.'

In the UK and Ireland, operations may continue if a buyer can be found, potentially with a smaller number of flagship stores supported by online sales and select concessions. Without a rescue, widespread closures are likely.

Uncertain Future

Claire's second bankruptcy in less than a decade marks a pivotal moment for the brand. The coming months will determine whether it can survive in a retail landscape increasingly dominated by e-commerce and shifting consumer habits.

If new investment and a viable turnaround plan emerge, Claire's could remain a presence on the high street, albeit on a smaller scale. Without them, its brightly coloured shopfronts may soon fade entirely.