NEWS
15/10/2018 12:15 BST | Updated 15/10/2018 14:57 BST

Claire's Considering Store Closures Which Could Put Hundreds Of Jobs At Risk

The accessories chain has more than 350 stores in the UK.

ASSOCIATED PRESS
There are over 350 Claire's branches in the UK

Claire’s is considering a raft of British store closures as the troubled fashion accessories chain becomes the latest high street firm to show signs of distress.

The company is believed to be talking to multiple restructuring firms regarding a number of options, the Press Association revealed. 

One of them is thought to include a Company Voluntary Arrangement (CVA), a controversial insolvency procedure used to shed under-performing sites.

It is understood that the talks are at a preliminary stage.

Claire’s has more than 350 stores in the UK and dozens of concessions, according to its most recent accounts.

Hundreds of jobs could be at risk if the chain presses ahead with a CVA.

CVAs have hit the headlines this year after being used by chains including New Look, Jamie’s Italian and Mothercare to shed outlets and secure rent reductions.

Fears that the UK chain could disappear from high streets mounted earlier this year after its US parent, Claire’s Stores Inc, filed for bankruptcy.

The US company announced last week that it has now emerged from Chapter 11 protection, having restructured almost $2 billion (£1.5bn) of debt.

Chief executive Ron Marshall said Claire’s had emerged as a “healthier, more profitable company” after eliminating debt and gaining access to 575 million US dollars in new capital.

However, Claire’s has previously stressed that its European operations would not be affected by the American business.

CORRECTION: This article has been amended to reflect the fact the company is speaking to multiple restructuring firms.