The fashion accessories chain Claire’s has shut down all 154 of its high street outlets across the UK and Ireland, resulting in the redundancy of around 1,300 employees.
This significant move does not, however, impact the retailer’s 356 concessions, many of which are located within Asda stores, nor its head office operations.
The closures follow private equity owner Modella Capital appointing Kroll to oversee the administration process earlier this year.
A spokesman for Kroll said: “As of April 27, all Claire’s standalone stores in UK and Ireland have ceased trading.
“All store employees have been advised of redundancy.
“We understand an interested party is in discussion with a number of landlords with a view to taking new leases for some of the sites.”
Claire’s could not “evolve fast enough” to compete with “nimble online platforms” such as Temu and TikTok Shop, according to Nicholas Found, head of commercial content at Retail Economics.
Temu’s ultra-low pricing and TikTok Shop’s ability to turn its social media users into customers has diminished the relevance of traditional high street players, “especially in fashion accessories where impulse buys are easy to substitute”, he said.
Similarly, Sean Moran, a restructuring and insolvency partner at Shakespeare Martineau, said the fashion and accessories industry has been overwhelmed by new competition from online retailers in recent years, putting increased pressure on high street brands.
“These tough market conditions will by no means only be affecting Claire’s, and we may well see other retail giants struggle in the coming months”, he said.
In January, Modella said it had made the “tough decision” to kickstart insolvency proceedings for the businesses after “last-ditch” measures had fallen through.
“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,” a spokesperson for the company said.
“In these circumstances, administration is the only option.
“In both cases, the legacy effects of trading prior to our ownership left them highly vulnerable.”
Modella said tough retail conditions, including those from government policies, were causing British businesses to “suffer”.
“The climate on the high street remains extremely challenging, and TOFS and Claire’s are not alone in experiencing difficulties,” the firm said.
“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.”
Modella bought more than 150 Claire’s shops last year, but 145 were not included in the deal, leading to their closure.
The fashion accessories chain had appointed administrators for its UK and Ireland business after filing for bankruptcy in the US.
Modella has become a significant force in the British retail industry, having bought WH Smith’s high street chain last year and taking over arts and crafts retailer Hobbycraft in 2024.
