Fashion accessories chain Claire's is reportedly plotting a return to the UK high street with plans to open 50 new stores, just days after it closed all 154 of its standalone UK sites.
Administration and Store Closures
Administrators at Kroll announced the closures this week and said that around 1,300 workers will be made redundant as a result. The move did not affect Claire's 356 concessions, including many in Asda stores, and its head office.
Plans for Revival
But in a new update, the Guardian reports that Claire's could be set to reopen four to 10 stores a week from June onwards. The newspaper claims Julien Jarjoura, the operator of its shops in France, Austria, Portugal and Spain, is signing new leases with UK landlords.
Mr Jarjoura will self-fund the new stores, which will still include ear-piercing services, but said they will be revamped with new jewellery and accessories which will start from £1.90 but could go up to more than £100.
Mr Jarjoura, who runs around 240 Claire's stores across Europe and tried to buy the brand earlier this year, told the Guardian: “The brand was basically dead and we’re bringing it back to life.”
Background and Challenges
Claire's was founded in the US and first launched in the UK in 1996 but has come under pressure from online competitors in recent years.
Private equity owner Modella Capital hired Kroll to oversee the administration earlier this year after it was hit by “alarming” weak Christmas trading. It marked the second administration for the business in a matter of months, having originally been bought by Modella from administration in September last year.
Claire's had already shut 145 stores, with around 1,000 jobs lost, during the previous administration last year.
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.”
Advice for Customers
Which? consumer expert Kat Cereda shared some advice for shoppers who have outstanding orders with Claire's. She said: “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 the item cost less than £100 and was bought using a credit or debit card, you may be able to claim under chargeback. If neither work or are unavailable, you could try submitting a claim to Claire’s administrators, though again, this is not guaranteed and the process can take months.”
