Claire's Accessories faces an uncertain future on UK high streets after its US parent business filed for bankruptcy.
The popular jewellery and accessories retailer, which operates around 280 stores across the UK, 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, after first filing for the process in 2018 after it was unable to repay a loan.
The group saw its finances improve after wiping around 1.9 billion dollars (£1.4 billion) off its balance sheet in a refinancing but has come under pressure from recent weak consumer demand and supply chain uncertainty.
The company operates 2,750 stores across 17 countries worldwide.
Its UK stores are currently unaffected by the bankruptcy process.
Court filings showed the business reported liabilities and assets of between 1 billion dollars and 10 billion dollars.
The documents also showed Claire's owes money to more than 25,000 creditors.
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.
Last month, Sky News reported that Claire's was working with advisers from restructuring firm Interpath to explore a potential sale or restructuring of its UK operations. The report indicated that a sale deal could result in store closures across the UK.
Chris Cramer, chief executive of Claire’s, said: “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.
“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.”
(PA/London) Note: This article has been edited with the help of Artificial Intelligence.
