The UK’s grappling high street is about to be hit with another severe blow as an iconic chain with over 300 locations “has no realistic path forward”. A staple in many towns and cities across the country, Claire's was once the place to go for teens seeking every kind of necklace and earrings.

But now the retailer is once again fighting for its survival with an army of advisers having been swooped in a desperate attempt to save the chain from closure. Back in 2018, the company filed for bankruptcy driven by a heavy debt load, reportedly around £1.4billion ($2 billion) Claire's, who has pierced millions of ears, is now facing its second bankruptcy in less than a decade.

The US based firm has not been exempt from the hiked cost pressures and rising online competition plaguing the industry, however.

The retail giant is staring down the barrel of a looming bank loan debt of £355m ($480m) loan that must be repaid in December 2026, now the chain has begun scrambling to conserve cash.

Due to its grim outlook restructuring experts at Interpath have been given the hard task of seeking investors willing to salvage all or part of its British operations. 

In an effort to conserve cash, Claire's opted to defer interest payments on this debt, according to Bloomberg.

Casting an even grimmer shadow James Gellert, executive chair at risk analytics provider RapidRatings International said: “If they're acting now with debt maturities still 18 months away, it's because they see no realistic path forward.”

There are 2,300 Claire’s stores around the world, its UK stores have racked up losses totalling £25m over the last three years. 

In the year to March 2024 it fell £4.7m into the red. The chain saw a 0.8% drop in UK sales last year, as per the latest figures submitted to Companies House.

The last few years has been a precarious period for retailers up and down the British high street, with around 35 shops shutting their doors every day in 2024.

Founded in 1974, the company prides itself as a shopping destination for jewelry, cosmetics, accessories and piercing for girls and teens. However, thanks to the rise of online shopping and sites like Amazon and Shein growing more popular thanks to their lower costs meaning Claires is no longer the go to place for girls in that age bracket.

Julie Palmer, a partner at the financial consultancy Begbies Traynor, says: "This news is yet another sign of the immense pressure on high street stalwarts, many of which are being forced to consider job cuts, store closures, or outright sales."