News Claire's Accessories about to collapse?

Discussion in 'Business News & Resources' started by Cody, Mar 13, 2018.

  1. Cody

    Cody

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    Just like many other retailers on the high streets and across the UK recent news shows Claire's Accessories in about to collapse after it announced the company is in debt of around $2 billion (£1.44 billion), which adds up to ten times more of its annual profit.

    It's expected the retailer is to file for bankruptcy as it is coming up to an interest payment of £43 million due today on 13th March. It is unclear whether this will affect any Claire's Accessories stores in the UK, however due to the recent collapse of tons of US stores such as Toys R Us just over a year ago, we could assume this will be flow over to the UK.

    The retailer, which currently has well over 3000 stores across the world, is needed to pay the £43 million today, though from the looks of it, may end up filing for bankruptcy instead.

    In the UK and US, online stores with cheaper alternatives have been the reason to why many high street and retail stores are failing. Consumer spending is also very low due to the current state of the economy.

    The retailer was purchased by private firm Apollo Global Management in 2007, whom have taken out massive loans during this course. In 2010 and 2013 the also added 350 extra stores.

    Last month electronic company Maplin went into administration last month, Jamie's Italian, Frankie & Benny's and Prezzo are now cutting costs by closing hundreds their stores across the UK.
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