Claire’s Accessories will permanently close its Aberdeen and Elgin stores as part of widespread shutdowns affecting 145 locations across the UK and Ireland, despite a rescue deal that has preserved the majority of the fashion chain’s operations.
The Aberdeen store at St Nicholas Centre and the Elgin outlet on High Street are among 16 Scottish locations excluded from investment firm Modella Capital’s acquisition of 156 stores from administrators. The closures represent more than half of Claire’s 25 Scottish stores, with closing-down sales already underway at affected locations.
The shutdowns follow Claire’s UK operations entering administration in August after the American parent company filed for Chapter 11 bankruptcy protection, citing mounting financial pressures from weak consumer demand and supply chain disruption. Administrators at Interpath successfully sold the majority of assets to Modella Capital on September 29, but nearly half the store portfolio was deemed unviable for transfer.
Market Context and Financial Pressures
Claire’s UK division has struggled with persistent losses totaling £25 million over the past three years, including a £4.7 million loss in the year to March 2024 on revenue of £137 million. The retailer faced an outstanding $480 million loan due for repayment by December 2026, creating urgent liquidity pressures that ultimately forced the administration process.
The company’s difficulties reflect broader challenges facing traditional retail chains, particularly those targeting younger demographics. Claire’s business model, built around mall-based locations offering impulse purchases and ear-piercing services, has struggled to adapt to changing consumer behaviors accelerated by the pandemic and cost-of-living pressures.
Rising Competition and Structural Decline
Retail analysts point to Claire’s weakening connection with its core teenage demographic as online competitors like Shein, Temu, and TikTok Shop have captured market share with ultra-low prices and social media-driven marketing strategies. The shift away from physical retail locations has been particularly damaging for accessory chains dependent on foot traffic and browsing behavior.
“Claire’s has to navigate not only financial pressures but also a cultural shift in how its audience shops,” explained retail expert Salter. “Without evolving its brand, experience, and offering, it risks remaining out of step with the very customers that once made it a high street staple”.
The retailer’s struggles mirror wider pressures on UK high street operators, with the Centre for Retail Research projecting approximately 17,350 retail site closures during 2025, potentially eliminating 202,000 jobs—the highest total since the pandemic peak of 2020.
The Scottish closures particularly affect communities where Claire’s has maintained a presence for decades. Beyond Aberdeen and Elgin, at-risk Scottish locations include stores in Glasgow’s Buchanan Galleries and Sauchiehall Street, East Kilbride Centre West, Livingston Designer Outlet, and venues in Ayr, Dumfries, Falkirk, Glenrothes, Kirkcaldy, and Paisley.
A spokesperson for joint administrators said: “Our priority remains to assess all of the options available for the Claire’s stores which did not transfer to Modella as part of the transaction announced on September 29. In the meantime, however, we have commenced closing down sales in each of the stores in order to sell the remaining stock”.
In Case You Missed it:
Claire’s closure announcement represents one chapter in what industry analysts describe as a catastrophic year for British retail. Recent months have seen River Island secure creditor approval for restructuring plans involving up to 33 store closures, while New Look shuttered a dozen UK sites and exited Ireland entirely.
The retail sector faces additional pressure from Chancellor Rachel Reeves’s increase to employers’ National Insurance Contributions, estimated to cost the industry £2.3 billion. Professor Joshua Bamfield, director of the Centre for Retail Research, warned that retail job losses could eclipse the pandemic peak, potentially reaching 202,000 positions in 2025.
The cumulative effect of these closures is transforming British high streets, with retail employment down 364,000 jobs over the past decade according to the British Retail Consortium. The organization noted that more retail jobs have been lost in ten years than exist across the entire fishing, car manufacture, and steel-making industries combined.
