Concerns for jobs in Waterford as retail chain Claire's enters administration

The popular fashion-jewellery retailer Claire's, best known for selling colourful necklaces and bracelets aimed at the pre-teen and teenage market, has entered administration.

The company, which operates 28 stores here, employs several hundred people across Ireland and nearly 2,000 in the UK.

There is one store in Waterford - at Broad Street in the city.

The US owners of the retailer confirmed the appointment of administrators - in the UK and Ireland - following their August 6 bankruptcy filing in the United States, with CEO Chris Cramer calling the decision to officially file a "difficult but a necessary one."

The owners say they have filed a formal notice to administrators from advisory firm Interpath, which has confirmed the appointment of Will Wright and Chris Pole as joint administrators (for the UK & Ireland).

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The development, which will be a major concern to workers, comes as the company has experienced a drop in sales in the wake of weaker levels of consumer demand. 

As of now, Claire's stores across Ireland and the UK will remain open according to the joint administrators. However, the future for the 306 stores (across both countries) remains uncertain.

The administrators say that while the chain's physical stores are still open for business, the company has ceased offering online shopping services. 

Any orders dispatched prior to the appointment of the administrator's will be delivered to customers as normal, however any orders that were placed but were not yet dispatched from the warehouse, will not be delivered.

The administrators have assured customers they will not be charged for any orders that have been placed but which have not been dispatched. 

Customers of Claire's are being advised that the administrators will be unable to provide any refunds to items bought prior to their appointment.

Interpath has assured workers at Claire's they will be made aware of "further information about what administration means for them."

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Interpath Chief Executive and joint administrator, Will Wright, explained: "Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess the options for the company."

Mr Wright said one possibility that remains open is a possible sale (of the company) which, he said, "would secure a future for this well loved brand."

This is the second time that Claire's has filed for bankruptcy in recent years, having filed in 2018 and exiting Chapter 11 bankruptcy (in the United States) in 2022.

Owned by a group of investment firms, the company last week blamed "increased competition, consumer spending trends and the ongoing shift away from 'brick-and-mortar' retail" for the decision to refile for bankruptcy as well as "debt obligations" to up to 50,000 creditors.

Claire's Chief Executive, and joint administrator, Chris Cramer, commented: "This decision, while difficult, is part of our broader effort to protect the long-term value of Claire's across all markets. Taking this step now will allow us to continue to trade the business while we explore the best possible path forward."

He added: "We are deeply grateful to our customers during this challenging period."