Accessories firm ‘to close’ UK stores

Claire’s is considering a raft of British store closures as the troubled fashion accessories chain becomes the latest high-street firm to show signs of distress.

The firm 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 under-performing sites.

Claire’s has more than 350 stores in the UK and dozens of concessions, according to its most recent accounts.

They include outlets in Tayside and Fife.

Hundreds of jobs could be at risk if the chain presses ahead with a CVA.

The situation follows just days after the chain’s US parent company announced it had emerged from Chapter 11 protection after filing for bankruptcy earlier this year.

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 recognisable high-street names to scale back its store estate, as consumers increasingly shop online.

CVAs have been used by the likes of New Look, Jamie’s Italian and Mothercare to shed sites and gain rent reductions.

It is understood that the 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 it is now free from Chapter 11 protection, having restructured almost £1.5 billion of debt.

Chief executive Ron Marshall said Claire’s had emerged as a “healthier, more profitable company” after eliminating debt and gaining access to millions in new capital.

However, Claire’s has previously stressed its European operations would not be affected by the US business.

The retailer is said to be considering filing for a Company Voluntary Arrangement (CVA).