Shoppers are often ‘left at the back of the queue’
Claire’s has shut all its 154 high street shops across the UK and Ireland. Administrators for the fashion accessories chain said that around 1,300 workers will be made redundant as a result. The move does not affect the retailer’s 356 concessions, including many in Asda stores, and its head office.
The retailer – which is known for its jewellery, clothing accessories and ear-piercing services – was founded in the US and first launched in the UK in 1996. It quickly expanded across UK high streets, but has come under pressure from low-priced online competitors in recent years.
The closures come after private equity owner Modella Capital hired Kroll to oversee the administration earlier this year. Modella, which also owns former WH Smith high street business TG Jones and Hobbycraft, placed the brand into insolvency 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.
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.”
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 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.”
