Claire's Accessories UK, the under-pressure operator of 280 stores across the UK and the Republic of Ireland, has filed a notice of intention to appoint administrators.
The decision comes after the US parent business filed for Chapter 11 bankruptcy on 6 August.
In a statement, the company's directors said they have taken the step "to protect the business and its stakeholders while options for the future continue to be evaluated". Will Wright and Chris Pole from Interpath are expected to be formally appointed as joint administrators to Claire's UK in the coming days.
"This decision, while difficult, is part of our broader effort to protect the long-term value of Claire's across all markets," said Chris Cramer, chief executive of Claire's in a statement. "In the UK, taking this step will allow us to continue to trade the business while we explore the best possible path forward. We are deeply grateful to our employees, partners and our customers during this challenging period."
The group said Claire's UK stores will remain open and continue to trade.
This announcement follows Claire's US and Canadian affiliates recently starting court-supervised restructuring proceedings. In the US, the Bankruptcy Court approved, on an interim basis, initial "first day" motions to provide liquidity to complete the Chapter 11 process. In Canada, Claire's Stores Canada Corp. is proceeding under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice. Separate proceedings are also already underway in Germany and Austria.
This filing applies exclusively to Claire's UK and does not affect operations in markets beyond the UK and the Republic of Ireland.
The Illinois-headquartered business was founded in 1961 and has become a high street and shopping centre staple in the UK selling jewellery and accessories.
In July it emerged that the UK business had hired restructuring specialist Interpath to search for investors for all or part of its UK operations. That could include an outright sale.
The move has come ahead of a deadline for a $480million (£355million) loan that needs to be repaid by December 2026, the Telegraph reports.
In the US in 2018, after Claire’s Accessories filed for Chapter 11 bankruptcy as part of an attempt to restructure its debts, Elliot Management and Monarch Alternative Capital took control of its stores as former creditors.
It was reported last month that it has been working with advisers at Houlihan Lokey and Alvarez and Marsal on a deal for its US operations to seek bankruptcy protection.
On 6 August it emerged that Claire's had identified over 1,100 US stores for possible closing and warned it may be forced to liquidate after seeking bankruptcy protection a second time, as reported.