Is Claire's Accessories set to disappear from Scottish high streets?

Popular high street retailer Claire’s Accessories is facing an uncertain future in Scotland after its American parent company filed for bankruptcy for the second time.

The US-based fashion and jewellery chain has filed for Chapter 11 bankruptcy protection in a court in Delaware, new legal documents have revealed.

The move comes amid mounting financial pressure from weak consumer demand and ongoing supply chain disruption.

Claire’s operates 2,750 stores across 17 countries, including around 280 across the UK – 25 of which are in Scotland.

At present, its UK operations remain unaffected by the bankruptcy proceedings in the United States, but the retailer is struggling to find a buyer for its British high street operations.

Where are the Claire’s stores in Scotland?

Inverness
Elgin
Aberdeen Trinity Centre
Aberdeen St Nicholas Centre
Perth
Dundee Overgate
Glenrothes
Kirkcaldy
Sterling Mills
Edinburgh Princes Street
Edinburgh Gyle
Edinburgh Fort Kinnaird
Livingston
Livingston Outlet
Falkirk
East Kilbride
Glasgow Fort
Glasgow St Enoch
Glasgow Buchanan Galleries
Glasgow Sauchiehall Street
Glasgow Silverburn
Glasgow Braehead
Clydebank
Ayr
Dumfries

Previous bankruptcy

This is the second time the group has declared bankruptcy. It first filed for the process in 2018 after it was unable to repay a loan.

The group saw its finances improve after wiping around 1.9bn dollars (£1.4bn) off its balance sheet in a refinancing but has come under pressure from recent weak consumer demand and supply chain uncertainty.

Documents from the new bankruptcy filing reveal the company holds between $1bn and $10bn in assets and liabilities, and owes money to more than 25,000 creditors.

Ownership of the group lies with several investment firms, including hedge fund giant Elliott Management – one of its previous creditors during the 2018 insolvency.

Reports in recent weeks have suggested that the company is considering significant changes to its UK business. According to Sky News, Claire’s is working with advisors from Interpath to explore a potential sale or restructuring, which could include store closures.

Lakeland owner Hilco is reportedly among the firms weighing up a possible takeover of the UK arm of the business.

The US company confirmed it is currently undergoing a strategic review and is in talks with “potential strategic partners” regarding the future of the brand.

‘Difficult but necessary step’

Claire’s CEO Chris Cramer described the decision to file for bankruptcy as “difficult but necessary”.

He said: “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.”