Claire’s is allegedly set to close 150 stores leaving 1,000 jobs at risk after it dropped into administration again.
The popular accessories chain, as well as discount store The Original Factory Shop, filed notices of intention to appoint administrators in the days following Christmas, The Sun reports.
And on Monday administrators from Kroll were officially brought in to organise the insolvency of the company’s UK and Irish operations.
The two chains’ owner Modella Capital confirmed the decision to place them into administration earlier this month.
Both Claire’s – which garnered a cult following thanks to its ear-piercing services and friendship bracelets – and The Original Factory Shop were purchased last year in last-minute rescue deals.
Many hoped the acquisition would turn their fortunes around, but things continued to go downhill for the chains and the company’s cash eventually ran out.
A spokesman for Modella previously said: ‘Very sadly, we have had to initiate insolvency proceedings for The Original Factory Shop (TOFS) and Claire’s Accessories UK & Ireland.
‘This has been a very tough decision. We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again.
Claire’s is allegedly set to close 150 stores leaving 1,000 jobs at risk after it dropped into administration again
The popular accessories chain filed a notice of intention to appoint administrators in the days following Christmas (Pictured: a shopper walks past a Claire’s in 2002)
‘In these circumstances, administration is the only option. In both cases, the legacy effects of trading prior to our ownership left them highly vulnerable.
‘The climate on the high street remains extremely challenging and TOFS and Claire’s are not alone in experiencing difficulties.
‘This is borne out by recent Sensormatic statistics and other data sources suggesting an alarming drop-off in pre-Christmas footfall.
‘A combination of very weak consumer confidence, highly adverse government fiscal policies and continued cost inflation is causing many established and much-loved businesses to suffer badly.
‘It’s a simple fact that if retailers can’t make money, they risk having to close – and jobs across the country are lost.’
The next steps will likely see the administrators repay creditors any outstanding debts by leveraging the company’s assets and business.
They will then attempt to prevent liquidation – a full closure – and if not then the firm must pay off as much of its debts from its remaining assets as possible.
A ‘moratorium’ will also be declared, stopping any creditors from carrying out legal action against the company.
Once a shopping paradise for tweens, Claire’s is being axed from high streets across the UK after it entered administration
The Chicago-born retailer, established in 1961, supplied teenagers across the UK with the latest designs
Founded in 1961 in Chicago before heading to the UK in the mid-90s, visits to Claire’s became a rite of passage for teens, with their stores boasting a vast array of glittery plastic earrings, necklaces, rings, keychains, and hats.
Even Victoria Beckham took her son Brooklyn – in more tranquil times for the clan – to have his ears pierced at Claire’s in London’s Westfield back in 2014, while Kim Kardashian stunned fans by popping into the Hawaii store to get some studs put in.
Talking to the Daily Mail about the store’s glory days, PR and brand expert Chad Teixeira said this month: ‘Claire’s worked because it knew exactly who it was for and never overcomplicated it.
‘It gave young girls a first taste of independence, choosing something for themselves, trying on identity without risk.
‘The products were cheap, loud, and trend-led, which made them accessible and exciting.
‘The ear-piercing chair turned the brand into a rite of passage, not just a shop. Claire’s wasn’t about quality or longevity, it was about feeling grown up for the first time.’
But the chain’s fortunes have nosedived in recent years. In 2017 Claire’s was forced to pull 17 of its makeup products after a glitter set tested positive for asbestos.
Two years later, the brand was back in the headlines after a former employee revealed a company policy to forcibly pierce the ears of distressed children against their will if their parents insist on it.
Tweens would take to Claire’s to purchase matching necklaces to share with their close friends
Raylene Marks, who worked at a Claire’s store in Edmonton, Alberta, Canada, for four months, quit in April 2019 after an incident involving a seven-year-old girl who made it clear she did not want a piercing.
The girl’s mother eventually left with her, but Raylene said she reached her ‘breaking point’ after a manager said that had the mother insisted and physically held her protesting daughter down in the chair, Raylene still would have had to pierce her.
Claire’s told the Daily Mail at the time that they were investigating the store where she worked.
Ultimately, Claire’s failed to meet the changing demands of British customers, who now have fast fashion readily available at their fingertips.
Still, the chain’s demise will likely leave a legion of fans crestfallen, with shoppers in Newcastle previously speaking out about their sadness at the news.
Student Holly Howells, 18, said: ‘Claire’s was my childhood. It’s where I went every Saturday.
‘It makes me really sad to think it might not be around for kids in the future. Where else will little girls go to get all their accessories?
‘I just think of the bright lights, the earrings and headbands. Everything was so pretty.
Spikey earrings were all the rage in the noughties – and Claire’s was a big supplier of the trend
‘I was probably between six and ten when I went there the most. My mum and dad would take me and I’d spend my Christmas money there.
‘I can’t believe it might not be around for the next generation.’
Her friend Lola Morrison, 17, also a student, said: ‘Claire’s was the place to go when I was a child.
‘They had everything you could want as a little girl, it was like a palace for accessories.
‘And everything was so well priced, we could spend our pocket money there. It’s so sad it might not be a thing anymore.
‘I feel sorry for all the people who could lose their jobs too. I hope they find a way to make it work and keep them open.’
The Original Factory Shop, meanwhile, has been struggling for some time after failing to successfully hop onto the discount stores train.
Previous owners Duke Street Capital had searched in vain for a buyer for two years before Modella came to the rescue last February.
But the purchase only delayed the company’s decline, which initially saw more than a dozen stores close and will now likely involve further shuttering.
