Claire’s has shut all its 154 high street shops across the UK and Ireland, leaving around 1,300 employees redundant. The fashion accessories chain, known for its jewellery, clothing accessories and ear-piercing services, was placed into administration by its private equity owner Modella Capital after weak Christmas trading.
What Happened to Claire’s?
The retailer was founded in the US and first launched in the UK in 1996. It quickly expanded across UK high streets but has faced increasing pressure from low-priced online competitors in recent years. Modella Capital, which also owns former WH Smith high street business TG Jones and Hobbycraft, appointed Kroll to oversee the administration earlier this year after the brand was hit by “alarming” weak Christmas trading.
This marks the second administration for the business in a matter of months. Claire’s had originally been bought by Modella from administration in September last year, during which it had already shut 145 stores and cut around 1,000 jobs. The move does not affect the retailer’s 356 concessions, including many in Asda stores, and its head office.
Administrator’s Statement
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.”
Your Rights on Orders, Refunds and Gift Cards
Which? consumer expert Kat Cereda said the announcement “will be devastating for its employees and a real concern for customers, some of whom may be left with unusable gift cards or concerns about recent purchases”.
“When a retailer enters administration, shoppers are often left at the back of the queue. However, your rights depend on how you paid and the status of your order.”
If You Paid by Credit Card
If the item is faulty or doesn’t arrive and you’ve bought it on your credit card, you can try claiming from your card issuer under section 75 of the Consumer Credit Act. However, that only applies to purchases over £100, so might not be available for many Claire’s customers.
If You Paid by Debit Card or Under £100
If the item cost less than £100 and was bought using a credit or debit card, you may be able to claim under chargeback. This process allows you to dispute a transaction with your bank or card issuer.
If Neither Option Works
If neither section 75 nor chargeback are available or successful, you could try submitting a claim to Claire’s administrators. However, this is not guaranteed and the process can take months.
What About Gift Cards?
Gift cards are often considered unsecured claims in an administration, meaning customers may not get their money back. It is advisable to contact the administrators directly for specific guidance on gift card claims.
