Major UK fashion retailer closes all 154 stores with 1,300 jobs lost

Fashion accessories retailer Claire’s has closed its 154 UK and Ireland stores with the loss of around 1,300 jobs, administrators have said. Every store employee has been informed they are being made redundant. Sources said staff had been asked to pack up the final stock and equipment with the remaining outlets to formally close on Tuesday.

Insolvency practitioners at Kroll confirmed the closures, with a spokesperson stating: “As of 27th April, all Claire’s standalone stores in UK and Ireland have ceased trading.”

The jewellery retailer’s 356 concessions, including many in Asda stores, European stores and its head office, remain unaffected by the closure.

It comes amid increasing pressures for the British high street, with Poundland shutting numerous outlets and Poundstretcher recently announcing restructuring plans involving significant rent reductions.

Claire’s collapsed into administration in January, just a few months after about half the chain had been rescued by its previous owners, Modella Capital.

The jewellery and ear-piercing retailer’s UK arm called in administrators after sales declined amid competition from online retailers such as Amazon. Its UK division’s difficulties worsened after Claire’s in the US and Canada filed for bankruptcy for the second time in seven years.

Modella Capital blamed the high street climate, adding that government policy had caused a tough trading environment by raising staffing costs such as National Insurance Contributions.

Founded in 1961 in Chicago, Claire’s operated more than 2,750 stores across 17 countries in North America and Europe and has been particularly popular among teenagers. It is particularly known for its colourful shop fronts, shiny racks of jewellery and ear piercing services. The brand’s bright purple branding was a familiar sight for millions of teens during a Saturday shop.

Fashion expert Priya Raj told the BBC that Claire’s problems have been affected by changing consumer behaviours among young generations.

She said social media and online retail have largely impacted how and what young people shop, with a wider spending choice also playing a role.

She said: “If we think about teens today, they’re looking at social media for influence on what to buy, rather than their local high street or shopping centre.

“So naturally their tastes are evolving into what’s mainstream right now – minimal jewellery, sometimes chunky, sometimes with a more curated look – basically not the cutesy, juvenile look that Claire’s is known for.”

However, it might not be all doom and gloom for the store.

Kroll’s spokesperson added that “an interested party is in discussions with a number of landlords with a view to taking new leases for some of the sites.”

The closures come just days after reports emerged that French businessman Julien Jarjoura, who already runs Claire’s in several European countries, is trying to put together a rescue deal.

Jarjoura is reportedly keen to acquire 50 UK stores to keep the brand alive on British shores.

However, talks with landlords remain ongoing and it remains possible that no deal will be struck to save the remaining sites.