Claire’s Accessories mulls sale as cost pressures rise

Claire’s Accessories is exploring a potential sale of the business amid rising cost pressures and competition.

The retailer’s owners which include JP Morgan, Elliott Management and Monarch Alternative Capital are said to have hired bankers at Houlihan Lokey to seek out potential buyers, Bloomberg first reported.

It is understood that a prospective bidder could acquire parts or all of the retailer’s 2,750 stores worldwide, including its 281 locations around the UK.

The news follows reports that Claire’s needs to address an almost £367.3m ($500m) loan due by December 2026. According to Bloomberg, the business chose to defer interest payments on the debt to reserve cash.

The retailer’s UK business posted a 0.8% drop in sales to £137m last year, according to accounts filed with Companies House.  Pre-tax losses narrowed from £5.02m to £4.08m.

It stated that “general economic conditions and consumer activity in Europe, in particular general retail customer traffic and
discretionary consumer spending” had impacted its performance during the year.

Claire’s is not the only retailer to have placed itself up for sale in recent months, with Revolution Beauty exploring a possible change of ownership after receiving takeover bids from “a number of” interested parties.

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