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?

VAT hasn't gone up?

https://www.theguardian.com/business/2026/apr/27/claires-to-close-remaining-uk-stores-on-tuesday-more-than-1000-job-losses

Curse of Private Equity.

Claire’s to close remaining UK stores, 1,000+ job losses.

Unsecured creditors to lose £10.6m.

Same PE owner to close 100 TG Jones (WH Smith) shops, plans to use insolvency procedure to avoid paying creditors.

The same firm gutted The Original Factory Shop and Hobbycraft.

It still went bust. Next bought it for a song.

18yo DD has barely bought a thing from Claires, "overpriced tacky crap" were her words when she heard the news yesterday.

Thats the reason it's gone bust, not the NI hikes.

Not suprised its gone bust, it was a matter of time. It’s always been overpriced tat and they never got with the times they failed to change with the times.

It’s also been looking for a buyer for months, from before the NI increase. Modella bought 154 of the stores in August last year and has been struggling with them since

A 1% increase in NI is not causing thousands of shops to close. If their business is so vulnerable that they cannot afford to pay a 1% increase on labour costs then their business was likely failing anyway.

Ultimately shops are closing because people shop online. That and we need to be honest about the fact the the UK as a nation is getting poorer.

I know it cites the hike in NI. That's not in question.

Ok I’m not sure what you’re disagreeing on if you accept that quote.

In pp there is the usual they’re not viable anyway if a small tax can end them, this tends to get less ok when it’s posters jobs / payments or their dc not able to get either. It’s not just CA but many in hospitality and retail saying the same.

Claire’s Accessories sold overpriced tat that people now choose to source from the likes of Shein or Temu and which was headed to landfill. No sadness from me. Businesses have to move with the times just like everyone else.

Employer NI contributions in the UK accounts for 8.9% of gross income. Very low compared to France 11.3% and Germany 19.7%.

How do companies cope in these countries?

It isn't. What is being discussed by most is how pleased they are that a shop they don't like is closing.

overall modern business when competing with a global market, needs cheap wages for staff as part of the business model to make profits, however most modern businesses are not able to make profits in the modern times due to globalisation.

society needs a new economic system

I am not sure people are pleased, exactly. But either way, that is not "defending the government over CA".

Yep. These threads are odd when you look elsewhere on mn and posters are stressing about work for their dc, or their own jobs.

When I was a teen in the 90’s Claire’s was tat, but cheap and cheerful tat. When I last went in to look at hair accessories for my DD a year or two back it had become ridiculously expensive tat. I ended up finding something cheaper in Accesorize!

I accept that the quote is an accurate report of what was said. My point is that I don't think Claire's giving that level of prominence to one small factor is an accurate description of why they're going under, and I wonder whether the people who are doing so would feel that way if it didn't happen to slag off a person they don't like.

Saying that people would think differently if it were their job at risk/going might be true, but it doesn't mean those people are correct. In the same way that someone who worked in, say, coal mining probably has a different view to a person who feels the Thatcherite reforms of the 80s were necessary, but you presumably wouldn't think that meant the former must be the ones who are right.

The flip side is also the case, you sound supportive of Labour and prefer criticism wasn’t aimed at their policies.

Yes, CA like many other high street chains, failed to keep up with the retail trends in their sector. Other high street stores provide relatively cheap, on trend imported accessories and they do it better. Just look at their dated and unattractive website which looked like something spewed out of bloke's idea of a 13 year old girl on geocities.

CA is in trouble in the US for exactly the same reason - failure to keep up with trends in retail in their sectore.

NI is a real problem for businesses and has caused job reductions but mostly its less recruitment, non replacement of existing staff and depressed wages in the private sector. Businesses make cuts to compensate for the increased costs.

If the whole business fails because of a 1% change in NI then the business was bordeline viable in the first place.

Claire’s staff pierced babies. Actual babies. Even if they were crying.
Babies. WTF?
I’m glad they’re gone.

They were charging far too much for nasty tat and plastic shite that will outlast us all.
Not a loss and bugger all to do with Rachel Reeves!

It’s been shit for years. Their own fault entirely for selling overpriced tat. Dreadful store.

Good riddance. That store was daylight robbery for plastic tat.

You think these posters don't sound pleased??

OK. Some people might be pleased but they are still not "defending the government over CA" as pp erroneously claimed.

‘Pp’ or quotes it’s still a no thanks.

It had already filed for bankruptcy on previous occasions, long before Labour came to power. The market has changed, and they haven’t adapted. It’s been a long time since my children wanted their stuff - they would rather get better value at Primark.

I was discussing your comment with Katypp, not trying to get you to engage. I don't mind if you do or if you don't.

I don't think Rachel can be blamed for how shit Claire's accessories was? It was on the way out for years