Rumours a have surfaced that Claire’s is considering closing some of their 350 UK stores, becoming the latest high street firm to show signs of distress.
It’s been revealed that they are working with restructuring firm, Alix Partners – analysing a number of options, one being a Company Voluntary Arrangement (CVA). Hundreds of jobs could be at risk.
This news follows days after the chains US parent company, announced they had emerged from Chapter 11 protection after filing for bankruptcy earlier this year. A restructuring programme shows Elliott Management and Monarch took control of the US sector.
It was stressed European operations would not be affected, following Claire’s Stores Inc’s file for bankruptcy … could this now change?
Claire’s would not be the first retailer to enter a CVA following the High Street’s turbulent environment. Home Base, Mothercare, New look and Jamie’s Italian are but to name a few, who have used the procedure to gain rent reductions and close stores.
The pressure on the High Street shows no sign of abating, although there was a bit of a lull over the Summer, as costs rise, discretionary spending slows and shopping moves online. The UK has the highest amount of online sales as a proportion of total sales in the G7 as the British surf the internet for clothes and other items.