Claire’s, a popular accessories retailer for tweens and teens, has entered administration in the UK and Ireland, jeopardizing over 300 high street stores and 2,150 jobs. Despite the administration, the stores are still operating normally while the website has ceased taking orders. Claire’s, renowned for its ear piercing services, is no longer offering refunds and unshipped orders will not be fulfilled.

The administration process is being overseen by joint administrators, Will Wright and Chris Pole from Interpath. This development follows Claire’s filing for bankruptcy in the US for the second time, affecting its global network of over 2,700 stores. The company previously filed for bankruptcy in 2018 due to loan repayment challenges.

Reports indicate that Claire’s has accumulated £25 million in losses in the UK over the last three years, with a recent annual loss of £4.7 million. With a looming £375 million loan repayment by next December, the company has struggled against declining sales and online competition.

Hilco Capital, the owner of Lakeland, had shown interest in acquiring Claire’s but ultimately withdrew from the process. Former creditors, including investment firms Elliott Management Corp and Monarch Alternative Capital LP, have controlled Claire’s since its 2018 bankruptcy.

CEO Chris Cramer expressed the difficulty of the decision but emphasized its importance in safeguarding Claire’s long-term value. The administrators aim to sustain store operations while exploring potential sale opportunities to secure the brand’s future.

Recent US bankruptcy filings revealed Claire’s owing debts to over 25,000 creditors, with reported liabilities and assets ranging between $1 billion and $10 billion. The administrators are committed to keeping the stores operational and evaluating strategic options for the company’s future.