Administrators overseeing Claire’s two UK insolvency processes could receive more than £7 million in fees, while unsecured creditors face losses exceeding £22 million across the collapsed businesses.
Interpath is seeking approval for an additional £3.2 million in remuneration for the first administration, which began after Claire’s Accessories UK entered insolvency proceedings on 13 August 2025.
The restructuring firm said Claire’s international corporate structure, and the need to keep elements of the business operating while buyers were sought, made the work more complex and costly than anticipated. Hourly rates for the firm’s most senior staff reached up to £1,515.
Combined with fees incurred by restructuring and advisory firm Kroll, which is handling Claire’s second administration, the additional Interpath remuneration would take the potential bill for the two processes to above £7 million.
The original Claire’s Accessories UK administration is not expected to yield any payout for unsecured creditors, whose estimated claims total £11.9 million.
Rescue deal led to a second administration
Interpath sold most of Claire’s UK business and assets to retail investor Modella Capital in September 2025. The transaction covered 156 stores across the UK and Ireland and preserved about 1,000 jobs.
A further 145 stores were excluded from the deal and continued trading temporarily while options were assessed. The rescued operation was transferred into CAUKI Limited, formerly Modella Acquisition.
CAUKI then entered administration on 26 January 2026. Kroll has since incurred about £2.2 million in advisory fees, which remain unpaid.
The second business owes approximately £10.6 million to unsecured creditors, taking unsecured claims across the two administrations to about £22.5 million.
Store closures affected more than 2,000 jobs
Kroll said on 27 April that the 154 remaining Claire’s standalone outlets across the UK and Ireland had stopped trading. Around 1,300 employees were made redundant, while the retailer’s 356 concessions, including sites within Asda stores, were unaffected by the closures.
Although the first sale initially safeguarded about 1,000 roles, the two insolvency processes ultimately impacted more than 2,000 jobs.
Claire’s entered its second administration as consumer confidence remained weak and costs continued to rise. The accessories retailer had also faced lower high street footfall and competition from online platforms offering lower prices.
Entrepreneur Julien Jarjoura, who operates Claire’s stores in several European markets, secured approval from US brand owner Ames Watson to relaunch the chain in the UK in May 2026. His privately funded plan targeted around 50 stores, subject to lease agreements with landlords.
His strategy includes refurbishing stores, continuing ear-piercing services and introducing a refreshed product line, with prices starting at £1.90 and exceeding £100 for higher-end items.