Closure fears at Claire’s Accessories stores in Shropshire after owner files for bankruptcy
Claire’s Accessories' two stores in Shropshire are facing an uncertain future after the firm's US owner filed for bankruptcy today (August 6).
The company runs two outlets in Shropshire, in Telford and Shrewsbury, among around 280 stores in the UK. In total, Claire’s runs 2,750 stores across 17 countries, employing around 5,000 people across its operation.
The US-based fashion accessories and jewellery business has filed for Chapter 11 bankruptcy in a court in Delaware, according to new filings.
It is the second time the group has declared bankruptcy, having filed for the process in 2018 after it was unable to repay a loan.
Bosses at the Darwin Centre, where the chain's Shrewsbury outlet is based, declined to comment this morning. The Telford Centre did not immediately respond to a request for comment.
The firm's CEO Chris Cramer said the decision to file for bankruptcy was "difficult but necessary".
"Increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire's and its stakeholders," he said.
"We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.
"I'd like to express my gratitude for our employees, who have continued to work diligently in a constantly evolving consumer landscape to deliver amazing products and experiences for our customers. We remain committed to serving our customers and partnering with our vendors and landlords in other regions during this time."
Last month, business insolvency specialists at Interpath were appointed to seek a potential sale or restructuring of its UK business, ahead of a £355 million loan repayment deadline, which is due in December 2026.
The group is owned by a group of firms, including investment giant Elliott Management, who were creditors when the retail firm first faced insolvency seven years ago.
The new bankruptcy filings showed the business reported liabilities and assets of between 1 billion dollars and 10 billion dollars. It also showed the company owed more than 25,000 creditors.
