Two prominent retail investors are reportedly in the running to acquire the UK and Ireland operations of Claire’s, the popular accessories chain that recently entered administration. The bids come from Modella Capital, the new owner of WH Smith’s high street stores, and Doug Putman, the entrepreneur credited with the turnaround of HMV. The administration of Claire’s, a long-standing fixture on UK high streets, has put approximately 2,150 jobs at risk across its 278 UK and 28 Irish stores.
Key Takeaways
- Modella Capital and Doug Putman have submitted bids for Claire’s UK and Ireland.
- Claire’s entered administration last month, impacting 2,150 jobs.
- The company has faced declining sales, increased competition, and rising costs.
- Any potential buyer is expected to close a significant number of stores.
Bidding War Erupts for Claire’s
Modella Capital, known for its plans to rebrand hundreds of WH Smith stores as TG Jones, submitted a formal offer for Claire’s UK and Ireland operations within the past ten days. Doug Putman, whose Sunrise Records successfully acquired HMV in 2019, has also made an offer. Putman had previously attempted to purchase Wilko after its collapse in 2023 but was unsuccessful.
Administrators at Interpath Advisory are currently overseeing the restructuring process. While they continue to trade all Claire’s stores, they are evaluating strategic options for the business, including a potential sale. It remains unclear which of the two bidders is currently leading the acquisition process, and whether other parties might also be in discussions.
Challenges Facing Claire’s
Claire’s, a brand particularly popular with teenage shoppers, has been struggling with declining sales and intensified competition from both online retailers and other physical stores. The company’s profitability has been significantly impacted by factors such as inflation, rising labour costs, supply chain disruptions, and US tariffs on Chinese imports. These economic pressures have compressed profit margins and contributed to a loss of market share, especially to competitors targeting the same youth demographic.
This situation highlights the ongoing challenges faced by many high street retailers as they adapt to evolving consumer behaviour, with a growing preference for digital channels for fashion and accessories. The failure of Claire’s UK operations occurred shortly after its US parent company filed for Chapter 11 bankruptcy protection. The American business has since agreed to sell a substantial portion of its US stores to private equity firm Ames Watson.
Future Outlook for Stores
It is understood that any successful buyer of the UK arm of Claire’s is likely to close a considerable number of its existing outlets. Current estimates suggest that only around 100 stores might be considered sustainable in the long term. Modella Capital, which also owns The Original Factory Shop and Hobbycraft, has been actively expanding its retail portfolio. Doug Putman has also been linked to several other UK retail rescue attempts.
Sources
- Claire’s attracts bids from retail heavyweights following collapse into administration, TheIndustry.fashion.
- Modella and Doug Putman vie for collapsed Claire’s UK stores, Retail Sector.
