The future of beloved jewellery and accessories chain Claire’s hangs in the balance, as high street investor Hilco Capital emerges as a frontrunner to rescue the retailer’s UK arm from potential collapse.
Hilco, known for backing household names such as Superdry, HMV and Lakeland, is expected to be among the initial bidders for Claire’s UK operations in the coming weeks, according to Sky News. The high street staple, which operates 280 stores across Britain, is racing against time to resolve mounting financial pressures ahead of a looming $480 million (£356 million) loan repayment due in December 2026.
Earlier this month, Claire’s appointed restructuring advisers from Interpath, alongside Houlihan Lokey and Alvarez & Marsal, to explore options including a partial sale of its UK business. The move reflects a broader cost-saving strategy by its US-based parent company, which runs over 2,000 stores worldwide and is reportedly also exploring bankruptcy protection.
Claire’s UK operations have faced mounting losses totalling £25 million over the past three years, with the most recent accounts revealing a £4.7 million loss on £137 million in sales (year ending March 2024). Inflation, wage increases, supply chain disruptions, and the impact of US tariffs on Chinese-made goods have all eroded margins, while online competitors have siphoned off its young fashion-savvy customer base.
Industry insiders described the situation as “a real mess” to The Telegraph, warning that significant store closures are likely part of any potential deal.
Private equity firms Alteri Investors and Modella Capital (which recently acquired WH Smith’s high street stores) are also said to be circling.
Claire’s, famous for its ear piercing stations and glitter-stacked displays, became a fixture of the British high street in the late ’90s and early 2000s. Though the brand has seen periods of reinvention, including a 2018 bankruptcy in the US, its recent struggles echos wider struggles on the British high street as retailers wrestle with changing consumer habits and digital disruption. Should a buyer be found, Claire’s may avoid becoming another cautionary tale of retail nostalgia or a master revival.