Financial giants are placing their bids to swoop in and save Claire’s, which became one of the largest retailers to fall into administration this year. The new owner of WH Smiths, Modella Capital, is among the companies looking to save the accessories shop. Claire’s fell into insolvency last month, leaving over 2,150 jobs at risk. The high street staple is one of many to collapse, as the retail industry still faces the consequences of the 2024 Autumn Budget tax rises.
Modella Capital, which bought and rebranded hundreds of WH Smith shops to TG Jones, placed their offer to buy Claire’s in the last ten days, it is understood. At the same time, industry giant Doug Putman, whose Sunrise Records bought HMV in 2019, also put a bid in for the retailer. It is currently unknown which company is ahead in the battle to save Claire’s.
Last month, Claire’s said it would continue to trade all 278 stores in the UK, and the 28 and Ireland, while the future of the business was decided.
The collapse of the UK operation followed its US parent company filing for Chapter 11 bankruptcy protection.
Before slumping into administration, the retailer, popular among teenagers, has been running a sale, yet bidders pulled out of the auction, Sky News reports.
Modella Capital has quickly risen to become one of Britain’s most prolific investors in retail. It bought all 480 of WH Smiths UK stores for £40 million. The private equity firm also owns well-known high street shops such as The Original Factory Shop and Hobbycraft.
Despite the bids to buy Claire’s from administrators, any purchase would still likely lead to the closure of some shops, according to industry insiders.
Will Wright, UK chief executive at Interpath, said last month: “Claire’s has long been a popular brand across the UK, known not only for its trend-led accessories but also as the go-to destination for ear piercing.
“Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company.
“This includes exploring the possibility of a sale which would secure a future for this well-loved brand.”