Claire files for bankruptcy as online competition

Fashion Accessories Chen Clare filed for the second time for bankruptcy in the US as it struggles with less people buying its products, and by eating online competition.

It confirms that it was already in discussion about its future “with other partners”. The BBC understands that there will be no immediate effect on the firm’s UK store.

The US -based firm stated that it was “in discussion with our North American shops” with our sellers and landlords, but the shops there remain open while it discovered the “option”.

The US -based firm first filed for bankruptcy in 2018. It currently operates 2,750 stores in 17 countries in North America and Europe.

There are about 280 stores in the UK, below 370 in 2018 when it was filed for bankruptcy as it was unable to repay the loan.

Claire is known to sell jewelery, colorful accessories such as necklaces and bracelets, and its ear is part of the memories of millions of young people for piercing services.

The firm works under two brand names, Claire and Ising, and the latest casualties of consumers going away from physical shops.

Clare is owned by a group of firms, including the legendary investment company Elliot Management.

“This decision is difficult,” Clare’s Chief Executive Chris Kramer wrote, “But a required one”.

He blamed “increased competition, consumer spending trends and changes going away from brick-and-doer retail” for the declaration of bankruptcy, as well as “debt obligations” and comprehensive economic turmoil.

The global supply chain of the firm means that it is likely to suffer as a result of tariffs on goods, part of the trade war with many countries including US President Trump, China and Canada.

The company has a loan of $ 500m (£ 375M) in December next year, Julie Palmer said, Partner in Begbies Trainor, which is “overshadowing the mind of the management”.

Tariff “added stress”, he said.

According to retail analyst Catherine Shuttleworth, it is “appropriate to assume that they are in contact with the same pressure, many accessories are retailers.

He said, “A lot of that category has been obtained from Asia, and any increase in import cost is difficult when your price points are low and margins are tight,” he said.

Mr. Kramer said that the firm remained in active discussion with the potential “strategic and financial partners”, which did not exclude the possibility that it was still looking for a buyer.

Ms. Shuttleworth stated that the bankruptcy of Claire was a “clear sign” of how parts of retail “wanted to buy people around the world.

He said that young people did not browse on high street for cheap goods, as they used to do, such as online contestants such as Shin targeted young shopkeepers with “super cheap” goods.

The younger people were now “far more likely” to search for new brands through Tikok, compared to a shopping center – and still with footfalls under the pre -coffee levels, it hit very hard of the clair.

Ms. Palmer stated that Claire’s “dependence on physical shops – once a significant strength – has become a major obligation”.

Outside its European and American shops, Claire states that it has another 300 franchise stores mainly in the Middle East and South Africa. It also sells its products in thousands of concessions shops in Europe and America.

Its lavender-head storefronts, especially in the 1990s and the early 2000s, attracted young people who rifle the rifle for good value through their neon and glitter accessories racks. This was often a common stop for families and twins in the mall worldwide for a Saturday shopping journey.

It also makes an enthusiasm in selling toys including mud, headphone or fluffy toys.