Accessories retailer Claire’s has re-entered administration in the United Kingdom and Ireland just months after a restructuring was intended to stabilise the business, highlighting the continued strain on the high street.

Insolvency practitioners were appointed after the company failed to secure sufficient funding to support ongoing operations amid challenging trading conditions.

The move comes despite a recent rescue package that aimed to preserve the majority of Claire’s store estate and protect jobs across the UK and Ireland.

That agreement followed earlier financial distress linked to rising operating costs, subdued consumer spending and shifting shopping habits, particularly among younger customers increasingly favouring online platforms.

Administrators are now assessing options for the business, including a potential sale of all or parts of the chain, further store closures or a revised restructuring plan.

While stores continue to trade during the administration process, uncertainty surrounds the future of hundreds of outlets located primarily in shopping centres and high streets.

Industry analysts say Claire’s difficulties reflect broader pressures facing mid-market retailers, especially those reliant on discretionary spending.

Higher rents, increased wages and supply chain costs have squeezed margins, while footfall has yet to fully recover to pre-pandemic levels in many locations.

The return to administration underscores the fragile state of parts of the retail sector and raises fresh questions about the sustainability of recent rescue deals in an environment of persistent inflation and cautious consumers.

Administrators are expected to provide further updates as negotiations with creditors and potential buyers progress.