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Claire’s French unit faces legal action amid accusations of financial misconduct

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Claire’s French unit faces legal action amid accusations of financial misconduct


Translated by

Nazia BIBI KEENOO

Published



September 3, 2025

Claire’s France, the French subsidiary of U.S. accessories retailer Claire’s, was placed in receivership by the Paris Commercial Court on July 24. At a time when its parent company is facing global financial pressure, it has announced its intent to withdraw from the French market. While a call for tenders was launched to seek potential buyers, the French staff’s social and economic committee (CSE), with support from the CFDT and CFE-CGC unions, filed a complaint with the French National Financial Prosecutor’s Office (PNF) on September 3. The complaint accuses the group of “serious irregularities in the management of the company”, citing what they describe as “artificial insolvency” and “opaque intra-group financial flows”.

Claire’s store in Nancy – DR

In a letter addressed to the PNF and the public prosecutor, reviewed by FashionNetwork.com, the staff representatives alert authorities to a situation they believe could “characterize several economic and financial offenses within the framework of the receivership procedure.” More than 1,000 employees across 250 stores are now facing redundancy, even though Claire’s France had posted a net profit of €1.3 million just a year prior. The complaint argues that “no exceptional event justifies the transition from profitability to a declaration of cessation of payments in less than six months.”

The CSE’s lawyers allege suspicious financial activity, pointing to intra-group cash transfers that “rapidly and inexplicably drained” the French subsidiary’s funds. These transactions, they state, were executed by Claire’s group—whose parent company is based in the United States—without transparency or proper documentation, and “to the detriment of the French subsidiary’s social and financial interests.”

According to the legal filing, the pace and opacity of the transfers raise concerns about whether written agreements between subsidiaries even exist. The document also questions the French entity’s compliance with tax reporting obligations, suggesting possible “tax evasion organized by the Claire’s group, which two American pension funds control.” The lawyers claim that the group “literally emptied the coffers” of the French unit, without presenting any evidence of transfer pricing agreements or intra-group support mechanisms.

French law requires companies undergoing receivership to provide employee representatives with documentation outlining the causes of financial distress. However, the CSE claims it has not received the file submitted to the commercial court, nor the full financial details necessary to verify the company’s insolvency claims.

The complaint also highlights Claire’s complex capital structure. Claire’s France is owned entirely by Claire’s UK, which is in turn owned by the Swiss subsidiary. The Swiss company is controlled by Claire’s Holding (Luxembourg), itself owned by a company based in Gibraltar. The lawyers argue that “this layered structure, combined with opaque intra-group financial flows, enables fund transfers out of France without contractual justification and creates the conditions for artificial insolvency.”

The National Financial Prosecutor’s Office has jurisdiction over complex financial crimes, including misappropriation of corporate assets, fraudulent bankruptcy, breach of trust, and aggravated tax fraud.

In the retail sector, a similar case surfaced in April 2023, when a judicial investigation was launched into Financière Immobilière Bordelaise and its owner, Michel Ohayon—the buyer of Camaïeu and Go Sport—for the misuse of corporate assets, bankruptcy, aggravated fraud, and organized money laundering.

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Egypt’s apparel exports rise 25% in H1, trims US market reliance

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Egypt’s apparel exports rise 25% in H1, trims US market reliance



Egypt exported apparel worth $*,***.*** million during January–June ****, compared with $*,***.*** million in the same period of ****. This marks a strong rebound following global retail recovery and better utilisation of production capacities within Egypt’s textile clusters, according to the *fashion.com/market-intelligence/texpro-textile-and-apparel/” target=”_blank”>sourcing intelligence tool TexPro.

The country exported **.** per cent of its apparel, in value terms, to its top five markets. The US remained the largest destination despite a decline in its share. Egypt’s apparel exports to the US were valued at $***.*** million (**.** per cent) in the first half of ****, down from $***.*** million (**.** per cent) in the same period of ****, indicating reduced reliance on this market. The lower US share is partly due to slower American apparel imports and Egypt’s strategic push towards regional diversification.



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Real UK GDP grows 0.3% QoQ in quarter to Aug 2025: ONS

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Real UK GDP grows 0.3% QoQ in quarter to Aug 2025: ONS



Real UK gross domestic product (GDP) grew by 0.3 per cent quarter on quarter (QoQ) in the quarter to August this year—a slight increase following a QoQ growth of 0.2 per cent in the quarter to July and a QoQ growth of 0.3 per cent in the Quarter to June.

Production output fell by 0.3 per cent QoQ in the quarter to August—a smaller decrease than in the quarter to July, when it fell by 1.4 per cent (revised down from a fall of 1.3 per cent in the previous estimate).

Real UK GDP grew by 0.3 per cent quarter on quarter (QoQ) in the quarter to August—a slight rise following a QoQ growth of 0.2 per cent in the quarter to July.
Production output fell by 0.3 per cent QoQ in the quarter—a smaller drop than in the preceding quarter.
Manufacturing showed no QoQ growth in the quarter.
GDP grew by 0.1 per cent month on month in August, following a fall of 0.1 per cent in July.

Manufacturing, the largest production sub-sector, showed no QoQ growth in the three months to August 2025.

Construction output increased by 0.3 per cent QoQ in the three months to August 2025—a smaller increase than the QoQ growth of 0.5 per cent in the three months to July (revised down from 0.6 per cent in the previous estimate).

GDP is estimated to have grown by 0.1 per cent month on month (MoM) in August 2025, following a MoM fall of 0.1 per cent in July (revised down from no growth in the previous bulletin) and a MoM growth of 0.4 per cent in June this year.

Production grew by 0.4 per cent MoM in August 2025, whereas construction fell by 0.3 per cent MoM.

“Today’s data shows the economy picking up slightly, driven by services and construction. That will be welcomed by business, ahead of what is expected to be a challenging Budget next month,” said Stuart Morrison, research manager at the British Chambers of Commerce (BCC).

“Our latest survey shows business confidence and investment levels continue to suffer. A fifth of firms are expecting lower turnover over the next year, and a quarter have scaled back investment plans,” he said. 

“For the last twelve months, SMEs [small and medium enterprises] have told us the same story: rising costs, weak investment and little sense of relief on the horizon,” he added.

Fibre2Fashion News Desk (DS)



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Calais-Caudry Lace aims to secure European Geographical Indication status

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Calais-Caudry Lace aims to secure European Geographical Indication status


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October 18, 2025

Recognised as a protected geographical indication in France, Dentelle de Calais-Caudry says it has begun the process of becoming a European geographical indication to better protect its identity against low-grade counterfeits.

Dentelle de Calais-Caudry

From December 1, the European Union will introduce a simplified procedure under Regulation 2024/1143, which now governs geographical indications and protected designations of origin across its Member States.

Crucially, Europe is now extending a protection regime to artisanal, manufactured, and industrial products, which was previously reserved for agricultural produce, foodstuffs, and spirits.

“The Dentelliers de Calais-Caudry have already applied to the INPI, which is responsible for forwarding their application to the EUIPO (European Union Intellectual Property Office), so that their geographical indication can be recognised throughout the European Union”, say the Calais and Caudry lacemakers.

Dentelle de Calais-Caudry became a regulated geographical indication in France at the beginning of 2024. It took the local industry’s representatives five years to achieve this goal, which aims to distinguish and protect know-how that is more than two centuries old, and relies on the use of imposing, complex Leavers looms, which lend their name to the lace they produce. In 1958, the “Dentelle de Calais” label was launched, and in 2015 it became “Dentelle de Calais-Caudry”, to include manufacturers from the Caudry area.

Dentelle de Calais-Caudry

“Regularly confronted with very poor-quality counterfeits that damage their image and sales, the lacemakers of Calais-Caudry will, by obtaining this European geographical indication, benefit from legal protection across the 27 countries of the Union”, says the label, which hopes that “this guarantee of authenticity and quality, which will reassure all designers, stylists and lovers of Calais-Caudry lace, will help safeguard this know-how, these ‘passion’ trades, and accelerate international development.”

Today, Calais-Caudry lace is produced in Calais by Codentel, Cosetex, Noyon (Darquer), and Sophie Hallette / Riechers Marescot, which also operates in Caudry. The town is also home to Beauvillain Davoine, Darquer & Méry, Dentelles André Laude, Dentelles MC, Jean Bracq, and Solstiss.

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