Claire’s warns store managers bailiffs could turn up to recover debts
Claire’s has reportedly told its UK store managers to be prepared for bailiffs to visit stores in an attempt to recover debts, following the collapse of its US parent company.
Store managers have been instructed not to allow bailiffs to remove goods from stores and to notify senior management immediately if they arrive, according to Retail Week. Staff have also been told that gift cards can no longer be accepted as payment and that all working hours must be pre-approved by management.
The warning comes after Claire's, the US-founded jewellery and accessories chain which has been a mainstay on the British high street since the '90s, filed for Chapter 11 bankruptcy in the US last week.
The retailer, which operates nearly 300 UK stores, has brought in is restructuring advisers as it faces a looming $480 million (£356 million) loan repayment due December 2026.
The move has fuelled concerns over the future of the UK business, which operates almost 300 stores nationwide and is thought to be on the brink of administration after attempts to find a buyer failed.
Potential bidders, including Lakeland owner Hilco Capital, are said to have pulled out of the process due to the scale of the retailer’s challenges.
In July, restructuring advisers from Interpath, along with Houlihan Lokey and Alvarez & Marsal, were tasked to engineer a last‑ditch turnaround or partial sale of its British operations. This comes as it faces mounting cost pressures and a looming £355 million repayment due in December 2026.
Claire’s UK has suffered losses totalling £25 million over the past three years, including a £4.7 million deficit in the year to March 2024 on sales of £137 million. Inflation, wage increases, supply chain disruptions, and the impact of US tariffs on Chinese-made goods have all eroded margins, while online competitors have siphoned off its young fashion-savvy customer base.
Interpath is reportedly continuing to assess options for the retailer's UK arm, with a decision expected as soon as this week.
TheIndustry.fashion has contacted Interpath for comment.
