Claire’s Accessories goes under - blaming Rachel Reeves for the 1,300 jobs lost

[ProudAmberTurtle]

Claire’s Accessories has just gone bust - and over 1,300 people have lost their jobs.

I know it’s overpriced plastic and the piercing guns were always a bit controversial, but it’s been a total rite of passage for many girls. First earrings, birthday parties and that excitement of spending their pocket money on some glittery rubbish... it feels like another bit of childhood nostalgia is being wiped out.

But what’s really grating is why. According to the owner, the final nail in the coffin was the massive hike in National Insurance contributions from Rachel Reeves. It wasn't the only factor obviously - the high street is doing very badly, but it was the decisive factor.

How can a business that relies on young, part-time staff survive when their overheads have just been hiked through the roof? It’s not just the big brands; it’s the independent shops too. We’re going to be left with nothing but vape shops and empty units at this rate.

There was a report yesterday that Starmer will sack Reeves if the local elections go badly for him. Why can't they both go whatever the result?

Blaming RR is a bit far fetched, they were in trouble before she was in position

Yep this. Including that higher state support.

It’s really not far fetched, it’s actually incredibly simple. You intervene in the private sector making it too expensive to employ someone through taxation and legislation then a business will not employ people. The business will let people go, not hire, some cases shrink and in some cases close.
It’s proven countless times, it’s measuresble and it’s happening. It’s no great mystery.

clares were in trouble in 2023, as the full accounts explain

It’s really not and I’m not sure why it’s not understood when the stats are below but less abstractly the impact is there for people on mn trying to get jobs, and their dc.

Honestly this is like me saying ‘if you hit yourself in the head with a brick you’ll get a headache’ and someone arguing ‘ I don’t think so, people have had headaches without hitting themselves in the head with a brick in the past’. It’s just a bit silly really.

It isn’t. This thread isn’t about business demise generally, it’s about the demise of Claire’s Accessories. Its parent company in the US has gone bust and the UK business was in trouble long before the general election. What was silly was the statement it made attributing its failure to the NI increase when a cursory bit of research reveals it was failing long before that.

Nope, a cursory bit of research reveals it failed because of Government economic policy as stated by the independent auditors and directors. The cause as with so many long standing businesses going under is the current Government policy and it’s only getting worse until they are forced to reverse course either by IMF loan conditions or a change of Government. It’s really not on me or others to explain why getting hit head with a brick is a bad idea, it’s on the people arguing it’s a good idea to explain why.

Is that why the US parent company went bust? And why was it in trouble in 2023? I refer you to your brick to head post.

No it wasn’t, it was why it went bust this year. I refer you to my brick to the head post, hopefully you can explain why it’s a good idea?

Im not sure you’re following it fully but by brick to the head, I meant NIC, business rates, stealth income tax, new employment legislation specifically (although they have a lot of other damaging policies). I didn’t literally mean a brick although I have feeling people would defend that if it was brought in by Rachel. Can you explain why it’s a good idea? Are you denying it will increase unemployment and sink businesses or do you argue it’s worth it for the increase in benefits?

So it was the straw that broke the camel’s back. It wasn’t all hunky dory before, was it?

Some people are just desperate to blame Rachel Reeves, it started as soon as she was appointed.

Male politician mostly get called by their surname, why the use of 'Rachel' instead of 'Reeves'?

It was the brick to camels head that ended it and unfortunately there are no new camels coming along to carry the load due to all the flying bricks.

You are really going to have your hands full blaming anyone but the government for all the business closures and job losses over the next few months to years.

Because there’s two Labour MP Reeves

Heavens to Betsy, very few business fail for one reason only. Lots of the high street is failing owing to online shopping - be that for jewellery, clothes, plastic tat, newspapers or whatever. Of course increased costs contribute, but falling in person sales are systemic.

Some people don’t like Reeves mentioned when it comes to economic policy, it’s not just her but Starmer too.

It's easy, you call the Chancellor Rachel Reeves and the MP Ellie Reeves

But on a thread about Rachel Reeves, you don't really need to

Yes to this. You’re on a thread with the last Labour supporters but most can see it.

Or, they are on a thread with people who can see that blaming Reeves for CA's demise is rubbish.

You don't have to be a Labour supporter to understand that.

True, but economic illiteracy and Labour support are usually natural bedfellows.

Wasn’t your complaint about as soon as she came to office? This thread is 3 days old.

It’s like one of those UFO cults, ah but we didn’t conduct the ritual properly for the mothership to appear and whisk us away to a utopia

Ironically every time I attempt to scroll this thread it jumps to Amazon through the paid ad link. Sign of the times I’m afraid.
I will say their prices were comical.

Many, many retail businesses shrink, grow, fail, succeed every year under every flavour of government. The rise and fall, acquisition and sale at a loss etc etc of Bella Italia, under Tories, Labour and the coalition, for one:

https://en.wikipedia.org/wiki/Bella_Italia

Have the NI changes helped Claire’s? No. Were there many cheaper, more convenient alternatives for Claire’s customers in recent years? Yes.

Very few retail businesses survive on a standalone, unchanged basis for decade upon decade. Claire’s isn’t in the few.

Out of all the things that will impact jobs and state support it’s this @GoldebWeasel