Editor’s Note
Two companies have submitted takeover bids for the French operations of the affordable jewelry brand Claire’s, which entered receivership in July. The offers propose retaining 460 of the brand’s 829 employees in the country.
Two companies submitted proposals to the Paris Commercial Court on Thursday to take over the Claire’s brand in France, according to lawyers for the staff representatives who spoke to AFP. The company had been placed under receivership at the end of July. The offer involves taking on 460 of the 829 employees of the affordable jewelry brand.
The companies are fashion jewelry retailer June and Spanish phone case seller La Casa de las Carcasas. June has already received approval to use the Claire’s brand and intends to take on 426 employees. La Casa de las Carcasas plans to take on 34 employees. June would also take over 139 of the approximately 240 existing Claire’s stores. La Casa de las Carcasas would take over three stores to sell its phone accessories there.
They have a good chance of being confirmed by the court on November 14.
A social plan (PSE) has already been established for the employees not affected by the takeover. This will lead to dismissal for the majority of them.
The court opened insolvency proceedings for Claire’s France at the end of July. The brand is known primarily for its affordable jewelry, piercings, and other accessories for young people.
Management cited the continuous decline in sales in stores over several years. This was further accelerated by US tariffs on Chinese products, which Claire’s heavily relies on. However, according to the most recently published financial statements, Claire’s France generated a net profit of 1.3 million euros between the end of 2023 and the end of 2024, and 0.8 million euros in the previous fiscal year.
A third takeover offer had been presented to the receiver in the meantime before it was ultimately rejected.
The Claire’s brand is not only in trouble in France. Its parent company in the United States filed for bankruptcy in August before being taken over by an investment fund. Claire’s Spanish subsidiary also declared insolvency in September.
The staff representatives reported facts to the court in early September that they described as “serious irregularities in management.” They accuse the US parent company of having “emptied” the coffers through “financial flows” between the group’s numerous subsidiaries.