Claire’s files for bankruptcy for the second time

Claire’s filed for bankruptcy in the US on Wednesday, having previously done so in 2018. The BBC reported that there will be no immediate impact on its UK store portfoilio. 

However, a separate Sky News report said that the company was struggling to find a buyer for its UK high street business. There had previously been reports that Lakeland owner, Hilco Capital, had been interested in the business, with Interpath Advisory brought on board to help find a buyer.

Claire’s is owned by multiple firms including Elliot Management and Monarch Alternative Capital.

“This decision is difficult, but a necessary one. 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,” said Claire’s chief executive Chris Cramer. 

“We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”

The company also intends to commence proceedings in Canada for its affiliate there. In addition to its Claire’s business in the US, it also operates the Icing band. 

Sky News reported an insider saying Claire’s European workforce, inclusive of the UK, was 5,000 strong.