Retailer Claire’s Accessories has said it is not planning any major UK store closures, despite ongoing reports that the high street giant is on the brink of collapse.
Parent company Claire’s Stores Inc has now released a statement after the Press Association revealed that the business was working with restructuring firm Alix Partners on a number of rescue plan options to save the accessories and fashion company.
One plan thought to be considered is the Company Voluntary Arrangement (CVA), an insolvency procedure where some stores are closed and rents are reduced on remaining stores.
However, Claire’s Stores Inc has dismissed claims the company will be considering a CVA or closing UK stores in the “foreseeable future”.
The retailer, which specialises in ear piercings, jewellery and fashion accessories for preteens and teens, currently has over 350 stores around the UK.
Any store closures part of normal business
Recently Claire’s Accessories US parent company, Claire’s, successfully emerged from Chapter 11 bankruptcy protection.
Ron Marshall, Chief Executive Officer said: “We have no plans for either a CVA or major store closures in the UK in the foreseeable future.
“Recently emerging from the chapter 11 process in the US has enabled us to financially restructure, reducing our debt by $1.9 billion and giving us access to $575 million in capital.
“We are now in a better position than ever to be able to invest in the business further, especially in our vitally important store portfolio as we continue to grow and expand the Claire’s business.
“Any stores we do close or open in the UK would be as part of our normal course of business.”