Accessory chain believed to be talking to restructuring firms about options, including a CVA
Claire’s is considering closing a number of British stores as the troubled fashion accessories chain becomes the latest high street firm to show signs of distress.
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 underperforming sites.
Claire’s has more than 350 stores in the UK and dozens of concessions, according to its most recent accounts.
Hundreds of jobs could be at risk if the chain presses ahead with a CVA.
The news comes only days after the chain’s US parent company announced that it had emerged from Chapter 11 protection after filing for bankruptcy earlier this year.
The 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 well-known high street names to scale back its store estate as consumers increasingly shop online.
A string of companies have pushed through similar cost-cutting plans in the struggling retail sector this year, leading to hundreds of store closures and thousands of job losses across UK high streets and shopping centres. Carpetright, Mothercare and New Look have used CVAs to offload unwanted stores, while Toys R Us and House of Fraser tried CVAs before going into administration.
It is understood that the Claire’s 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 $2bn (£1.5bn) of debt.
The chief executive, Ron Marshall, said Claire’s had emerged as a “healthier, more profitable company” after eliminating debt and gaining access to $575m in new capital.
However, Claire’s has previously stressed that its European operations would not be affected by the American business.
