The jewellery retailer Claire’s is struggling to find a buyer for its British high street operations, stoking fears over thousands more retail jobs.
Sky News has learnt that advisers to Claire’s Inc, which filed for Chapter 11 bankruptcy protection in the US on Wednesday, are not expected to land a solvent bid for its UK chain, which trades from close to 300 stores.
The precise number of employees at its British operations is unclear, although one insider said the company had a 5,000-strong workforce across Europe, including the UK.
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A filing for administration in the UK is said to be unlikely this week but is now regarded as increasingly possible as soon as this month, according to retail executives.
Prospective bidders for Claire’s British arm, including the Lakeland owner Hilco Capital, have backed away from making offers in recent weeks as the scale of the chain’s challenges has become clear, a senior insolvency practitioner said.
Interpath Advisory, the restructuring firm, was recently hired to find a buyer for the UK business and its wider European operations.
One retail industry boss had speculated that as many as a third of the UK shops could be axed in a deal to salvage the rest of the chain, putting hundreds of jobs at risk.
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Claire’s has been a fixture in British shopping centres and on high streets for decades, and is particularly popular among teenage shoppers.
Houlihan Lokey, the investment bank, has been advising on the sale of the US arm.
Founded in 1961, it is reported to trade from 2,750 stores globally.
The company is owned by former creditors Elliott Management and Monarch Alternative Capital following a previous financial restructuring.
Interpath declined to comment.
