French Tycoon Aims to Rescue Clares and Protect Jobs

A French jewellery tycoon has initiated a plan to rescue Clares, following the collapse of the British arm of the high street retailer into administration for the second time within a year. Julien Jarjoura assumed control of the Swiss, Austrian, Spanish, French, and Portuguese subsidiaries of Clares over the past year, after the retailer’s American parent company entered bankruptcy proceedings. He acquired approximately 240 stores.

Jarjoura is currently in discussions with the British business’s administrators and its landlords. His proposal aims to keep many of the 154 UK shops operational and potentially safeguard hundreds of jobs. Jarjoura stated that everyone has a personal connection to Clares. He expressed his determination to preserve a business that he believes holds significant value.

Little known in Britain, Jarjoura supplies private label jewellery and accessories to various fashion brands across Europe, as well as to prestigious institutions, including the Louvre. He asserted that his company is currently the only candidate capable of securing the brand licence and saving as many stores and jobs as possible. Positive responses from landlords during his visit to London reaffirm his commitment.

The prospect of a rescue deal comes after a tumultuous period for the piercing and jewellery brand, which has experienced two collapses since last August. Significant store closures and job losses have marked this turbulent period. Previously owned by a consortium of investors, including Elliott Management, Clares entered bankruptcy in the United States last August. The company’s then chief executive, Chris Cramer, cited heightened competition, changing consumer spending habits, and the ongoing shift away from brick-and-mortar retail as contributing factors.

Following this, 156 of the company’s 306 UK stores were acquired in a pre-pack administration by private equity firm Modella Capital, known for its recent acquisition of WH Smith’s high street operations. However, hopes for a revival under Modella quickly diminished, as the British business was placed back into administration alongside another acquisition, The Original Factory Shop, this past January. Modella cited tax increases and a challenging trading environment as reasons for the failure, stating that neither brand had a realistic chance of achieving profitability.

At the time of the administration, Clares operated 154 stores and employed around 1,300 staff. Jarjoura recognised substantial brand damage and noted the prevalence of ‘store closing’ signage throughout the UK. He aims to reimagine and refresh the retailer by reducing prices significantly and discontinuing confusing promotional deals. Already, in Europe, he has lowered prices by an average of 28 percent.

Jarjoura has begun renovations on several Clares stores across Europe and has plans to expand the business to as many as 500 locations throughout the continent. He intends to revamp the product range to better align with the preferences of younger girls and the nuances of European shoppers. Observations of the current merchandise indicate that some of the products are tailored towards mothers and grandmothers, rather than the intended young demographic. A clear message is vital for the brand’s future.