Claire's low-cost jewelry stores in receivership in France, several stores in the Alpes-Maritimes and Var

The brand, known for its earrings, piercings, and accessories for teenagers, had around 250 stores and 800 employees by the start of 2024, according to the latest published accounts.

The Paris Economic Activities Court opened a receivership procedure on July 24, with a six-month observation period, according to the lawyer interviewed.

At the end of this observation period, the court will decide whether a continuation plan is possible, with a possible buyer, or whether compulsory liquidation, synonymous with cessation of activity, must be ordered.

"They say they are looking for a buyer," Khaled Meziani, lawyer for the staff representatives, told AFP, "but I'm afraid there will be a lot of layoffs."

Like Claire's, many other accessories and ready-to-wear brands have been placed in receivership in France over the past year and a half, including the teenage brand Jennyfer at the end of April, which finally found a buyer, saving 350 jobs out of the 1,000 threatened positions.

Many French brands are suffering in particular from competition from very low-cost Asian sites like Shein and Temu.

Present at the hearing, the general secretary of the CFDT services federation, Véronique Revillod, denounced to AFP a lack of clarity in the financial data of Claire's France, "which was still profitable last year," and on the reasons why the company requested judicial recovery.

Claire's France had generated a net profit of €1.3 million between the end of 2023 and the end of 2024, and €0.8 million in the previous financial year, according to the company's published accounts.

However, its sales had fallen from 142 million euros to 132 million euros in one year, including 37 million euros as a wholesaler in Europe for other Claire's stores.

The brand's US parent company is also struggling. The company's US stores first filed for Chapter 11 bankruptcy protection in 2018, and are reportedly preparing to do so again, according to Bloomberg, due to the impact of Trump's tariffs on Chinese-made products, which Claire's heavily relies on.

Contacted by AFP, the British subsidiary that owns Claire's France did not immediately respond.