Business

Troubled high street retailer Claire's considering store closures

Claire's is considering a raft of UK store closures as the troubled fashion accessories chain becomes the latest high street firm to show signs of distress.
Claire's is considering a raft of UK store closures as the troubled fashion accessories chain becomes the latest high street firm to show signs of distress. Claire's is considering a raft of UK store closures as the troubled fashion accessories chain becomes the latest high street firm to show signs of distress.

CLAIRE'S is considering a raft of UK store closures as the troubled fashion accessories chain becomes the latest high street firm to show signs of distress.

It has been reported that the company is believed to be talking to restructuring firms regarding a number of options, one of which is thought to include a Company Voluntary Arrangement (CVA), a controversial insolvency procedure used to shed under-performing sites.

Claire's, formerly known as Claire's Accessories, has more than 350 stores in the UK and dozens of concessions, according to its most recent accounts.

The company has around a dozen outlets in the north.

Hundreds of jobs across the UK could be at risk if the chain presses ahead with a CVA.

The news comes just days after the chain's US parent company announced that it had emerged from Chapter 11 protection after filing for bankruptcy earlier this year.

Investment funds Elliott Management and Monarch have seized control of the US arm through a painful restructuring.

Claire's could join a growing number of recognisable high street names to scale back its store estate, as consumers increasingly shop online.

CVAs have hit the headlines this year after the procedure was used by the likes of New Look, Jamie's Italian and Mothercare to shed sites and gain rent reductions.

It is understood that the talks are at a preliminary stage.

Fears that the UK chain could disappear from high streets mounted earlier this year after its US parent, Claire's Stores Inc, filed for bankruptcy.

The US company announced last week that it has now emerged from Chapter 11 protection, having restructured almost 2 billion US dollars (£1.5 billion) of debt.

Chief executive Ron Marshall said Claire's had emerged as a "healthier, more profitable company" after eliminating debt and gaining access to 575 million US dollars in new capital.

However, Claire's has previously stressed that its European operations would not be affected by the American business.

It has been a challenging 2018 for the UK high street, which has already suffered from the closures of the likes of Maplin and Toys R Us.

The north has also struggled, with the Primark fire at Bank Buildings in Belfast city centre leading to a sharp decline in retail footfall last month.

The latest figures, released yesterday show footfall fell by 4.6 per cent in September and in Belfast alone, by a colossal 30 per cent.

Footfall on the high street and retail parks fell by 6.1 per cent last month, while shopping centres saw a slight uplift (0.2 per cent) to a decline of -2.2 per cent.