Claire’s UK administration generates £4 million trading surplus as fees rise

The administrators of Claire’s Accessories UK Ltd generated an interim £4 million surplus from trading the retailer through its administration, but still expect no distribution to unsecured creditors as they work through the remaining property and wind-down issues following the sale of the business to CAUKI Limited. Joint administrators Will Wright and Chris Pole of Interpath said the administration has been extended for another 12 months and is now due to expire on 12 August 2027.

The majority of Claire’s UK business and assets were sold to CAUKI on 27 September 2025. Of the retailer’s store estate, 156 stores transferred to the buyer while the remaining 145 continued trading in administration until 22 November, when the final stores closed. Administrators reported £18.6 million of trading sales and £12.6 million of related trading costs, producing the £4 million interim surplus. They cautioned that further property costs of around £700,000 remain outstanding.

The administrators also received £1.8 million in rent payments under licence-to-occupy arrangements with CAUKI, together with £1.7 million of administration fees payable by the purchaser for managing properties under those arrangements. The estate remains focused on settling leasehold liabilities, including rent, rates and utilities, and completing the return of properties to landlords.

On recoveries, JPMorgan Chase Bank has been repaid its preferential claim in full. Employee preferential claims are estimated at approximately £85,049 and are expected to be paid in full, while secondary preferential claims due to HMRC are estimated at £3.4 million and are expected to receive a dividend. The administrators continue to forecast no return for unsecured creditors.

The progress report also highlights the cost of the unusually complex trading and property work. The administrators are seeking creditor approval for an additional £3.19 million of remuneration above their previous estimate, taking the revised fee estimate to approximately £7.21 million. Interpath recorded £1.03 million of time costs during the latest six-month reporting period, representing 1,139 hours at an average hourly rate of £909. The firm attributed the increase principally to managing more than 300 stores across multiple jurisdictions, reconciling trading activity, dealing with leasehold properties and administering the continuing licence-to-occupy arrangements after the sale.

Read the administrators’ latest report here.