Claire’s has collapsed into administration in the UK and Ireland operations, placing more than 2,000 jobs at risk.
The tween accessories and beauty retailer operator has filed a Notice of Intention to Appoint Administrator on 14 August, allowing it to continue trading while it explores its options.
Will Wright and Chris Pole from Interpath are expected to be formally appointed as joint administrators later this week.
Claire’s director claimed to have taken this direction in an effort to “protect the business and its stakeholders”, while options for the “future continues to be evaluated”.
Chris Cramer, CEO of Claire’s, said: “This decision, while difficult, is part of our broader effort to protect the long-term value of Claire’s across all markets.
“In the UK, taking this step will allow us to continue to trade the business while we explore the best possible path forward.
“We are deeply grateful to our employees, partners and our customers during this challenging period.”
It follows Claire’s declaring bankruptcy in the US for the second time in seven years this month.
The retailer, which also has its own brand beauty line C by Claire’s, commenced voluntary Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware to “maximise the value of its business”.
It said within the filing the company has debts of between US$1bn and $10bn.
Canadian affiliate operating stores (Claire's Canada) also intends to commence proceedings in Canada under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice.
Earlier this year, Claire's had deferred payments on debt interest as a way to conserve cash, according to a report by Bloomberg.
Claire's first filed for Chapter 11 bankruptcy in the US in 2018, with plans to shed a majority of its debt.