Half of Claire’s Stores in UK and Ireland to Be Rescued by Private Equity Firm

The private equity firm which owns Hobbycraft has signed a deal to rescue half of the UK and Irish stores of the accessories chain Claire’s but warned some job losses and shop closures were “inevitable.”

Modella Capital said it had bought 156 Claire’s stores in the UK and Ireland from administrators, securing the immediate future of 1,000 employees, “in the hope that it will be able to rescue this well-known and highly regarded brand.”

However, the private equity firm warned it was “inevitable that this acquisition will result in some store closures and job losses” as it negotiates with landlords over how many outlets it can keep open.

About 1,000 jobs also remain at risk at a further 145 UK Claire’s stores which have not been taken on by Modella. They will continue to be run by the administrators at Interpath, who stepped in after the group’s US parent collapsed in August.

Modella, which bought Hobbycraft last year, recently acquired WH Smith’s high street arm, which it has renamed with a fictitious “family” brand name, TG Jones, and has previously backed the fashion brand Ted Baker’s ill-fated UK licensee.

Will Wright, Interpath’s UK chief executive and joint administrator, said, “Our intention is to continue to trade the remaining portfolio of stores for as long as we can, while we explore the options available.”

The jewellery and ear-piercing retailer’s UK arm called in administrators last month after sales fell in the face of competition from online retailers such as Amazon as well as the rise of sales via social media such as TikTok.

That came shortly after Claire’s in the US and Canada filed for bankruptcy for the second time in seven years.

Founded in 1961, Claire’s has been a staple in British shopping centres and high streets. The group, which operates more than 2,750 stores across 17 countries in North America and Europe, offers ear-piercing services and jewellery which have made it particularly popular among teenagers.

Joseph Price, the managing director of Modella, said, “As a firm, we strongly believe that this much-loved brand deserves the chance to remain on the high street in the UK and Ireland. The issues that Claire’s is facing are significant, and we will need to work collaboratively with all interested parties if our proposed rescue plan is to succeed.”

Modella said it had separately reached a deal for the licence to trade the Claire’s brand in the UK and Ireland from Ames Watson, the US-based brand specialist which owns the intellectual property.

By Sarah Butler

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