The employees of the French subsidiary of Claire’s, placed bankrupt in July, reported Wednesday with the National Office of the Financial Prosecutor of the facts that describe “serious irregularities in the company’s administration”, accusing the US parent company of having “emptied the co -confines.” In a letter, representatives of the staff of the jewelry brand at low prices point to “financial flows” among the many subsidiaries of the group.
“These elements lead us to suspect not only the existence of a fraud situation, but also to fear a tax evasion organized by the Claire’s group, led by two US pension funds, which would literally have emptied the boxes of the French subsidiary,” argue the personnel representatives. The brand, known for its earrings, piercings and accessories for adolescents, had around 2024 around 250 stores and 800 employees, according to the latest published accounts.
The resumption of resumption is opened until September 19
The Paris Economic Activity Court opened a judicial administration procedure on July 24. The group is looking for one or more buyers for all or part of the company’s assets, said the administrator during a meeting with the CSE in July. The call to tenders extends until September 19. Management justifies the judicial administration for the continuous decline in the sales of the store for several years, with a recent acceleration that attributes to the tasks of US customs in Chinese products, to which Claire uses greatly.
The latest accounts published by Claire’s France presented 1.3 million euros in net profits between the late 2023 and late 2024, and 0.8 million in the previous financial year. But Claire’s sales in France have fallen 34% since 2022, when wages increased by 14% and the cost of products sold, by 34%, according to management figures.
This also mentioned with the staff representatives in July the growing competition of the new participants, such as the Asian SHEIN site or the action brand, who experienced a “rapid growth and question Claire’s position.” The company has stopped paying its rentals, and most wages are backed by the AGS Salary Warranty Regime.
Source: BFM TV
