High street stalwart Claire’s explores a sale as cost pressures mount
The accessories and piercings company Claire’s is exploring the possibility of a sale as it battles rising costs and competition.
Claire’s, which is owned by US investors JP Morgan, Elliott Management and Monarch Alternative Capital, operates 2,750 shops worldwide and 281 shops on UK high streets and retail parks.
Julie Palmer, partner at financial advisory firm Begbies Traynor, said that this decision comes as “little surprise”. Higher import costs and Trump’s trade tariffs are “denting consumer confidence”, she said, and have caused the company to assess its options.
The company’s owners, alongside bankers at Houlihan Lokey, have instigated a search for a future buyer, according to Bloomberg.
It faces rivalry from companies such as Amazon, which have capitalised on the cheaper products from China, leading to slowing in-store consumption and cost pressures.
Sales declined 0.8 per cent last year in the UK, according to accounts filed with Companies House.
“Claire’s low-price offering is clearly not strong enough to win over its core customers – teens and young adults – as they now have access to a vast array of affordable and convenient products online through platforms like Amazon and Temu,” Palmer said.
“So, with fewer reasons for its customers to visit their stores, the retailer has struggled to stay relevant,” Palmer added.
Potential buyers could purchase part or all of Claire’s, which operates more than 2,750 stores globally across 17 countries.
The company has faced bankruptcy before – in 2018, Elliot Management and Monarch Alternative Capital gained control of its stores as former creditors.
Despite a significant turnaround since then, the stalwart faces an impending bank loan debt of $500m (£367m) due in December 2026.
It chose to defer interest payments on the debt to reserve cash, according to Bloomberg.
Claire’s, once a key high street company for Gen Z and millennials, is not the only retailer to have considered a sale recently.
Earlier this year, WHSmith agreed to sell its 480 stores to Modella Capital, the owner of Hobbycraft. The £76m sale will result in a rebrand to TGJones.
“This news is yet another sign of the immense pressure on high street stalwarts, many of which are being forced to consider job cuts, store closures, or outright sales,” Palmer said.
“It’s a stark reflection of the tough consumer backdrop, made worse by the uncertainty and cost pressures caused by tariffs,” she added.
City PM has reached out to Elliott Management, Monarch Alternative Captial, Claire’s and Houlihan Lokey.
Additional reporting by Eliza Bruce-Jones