Fashion accessories retailer Claire's is poised to appoint administrators for its º£½ÇÊÓƵ and Ireland operations, placing some 2,150 jobs at risk.
The American parent company of the Birmingham-based high street chain confirmed it had submitted a formal notice to administrators from advisory firm Interpath.
The decision will spark concerns regarding the fate of its 306 outlets, comprising 278 across the º£½ÇÊÓƵ and 28 in Ireland.
Administrators are expected to pursue a potential rescue package for the retailer, which has experienced declining sales amid recent subdued consumer spending.
Claire's º£½ÇÊÓƵ outlets will continue trading as usual and employees will retain their roles following the appointment of administrators, the firm confirmed.
Will Wright, º£½ÇÊÓƵ chief executive at Interpath, said: "Claire's has long been a popular brand across the º£½ÇÊÓƵ, known not only for its trend-led accessories but also as the go-to destination for ear piercing.
"Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company.
"This includes exploring the possibility of a sale which would secure a future for this well-loved brand."
The development follows the US-headquartered Claire's group filing for Chapter 11 bankruptcy protection in a Delaware court last week. This marks the second occasion the group has entered bankruptcy proceedings, having initially filed in 2018.
Chris Cramer, chief executive of Claire's, stated: "This decision, while difficult, is part of our broader effort to protect the long-term value of Claire's across all markets.
"In the º£½ÇÊÓƵ, taking this step will allow us to continue to trade the business while we explore the best possible path forward. We are deeply grateful to our employees, partners and our customers during this challenging period."
Susannah Streeter, head of money and markets at Hargreaves Lansdown, commented: "Claire's attraction has waned, with its high street stores failing to pull in the business they used to.
"While they may still be a beacon for younger girls, families aren't heading out on so many shopping trips, with footfall in retail centres falling.
"The chain is now faced with stiff competition from TikTok and Insta shops, and by cheap accessories sold by fast fashion giants like Shein and Temu."
