(Commonwealth_ Europe) Claire’s, the fashion accessories chain beloved by teenagers and young shoppers, has been given a lifeline in the UK and Ireland after being bought out of administration. The business, which had been struggling with falling sales and mounting losses, will now see around 1,000 jobs saved following a deal with London-based Modella Capital, the retail investment firm that also owns WH Smith and Crafter’s Companion.
The sale, led by restructuring specialists Interpath, includes the transfer of 156 Claire’s stores across the UK and Ireland. Natasha Harbinson, managing director at Interpath, said the agreement would allow the brand to remain a familiar presence on British and Irish high streets. “We are pleased to confirm a sale of the majority of Claire’s UK business and assets, which will ensure this popular brand will continue to trade on high streets up and down the UK,” she explained. Harbinson also confirmed that a deal had been struck for Claire’s Swiss business, while talks were still ongoing with potential buyers for the company’s operations in France, Italy, and Poland.
For Claire’s, the sale comes at a critical time. The retailer has been battling declining sales, reporting a £4 million pre-tax loss on revenues of £137 million for the year ending in February 2024. Its chief executive, Chris Cramer, admitted the decision to enter administration was a “difficult” one but stressed that the company’s 278 shops in the UK and 28 in Ireland would remain open while the new owners explored the best possible future for the brand.
Although the deal covers most of the company’s business, 145 Claire’s stores are not part of the transaction. These outlets will also continue trading for now, while Interpath works to find new options. Will Wright, Interpath’s UK chief executive and joint administrator, expressed gratitude to employees, suppliers, and stakeholders who had stood by the business during this uncertain period. “We intend to continue to trade the remaining portfolio of stores for as long as we can, while we explore the options available,” he said.
For employees and customers alike, the sale marks a moment of cautious relief. While challenges remain for the chain, the intervention from Modella Capital gives Claire’s a chance to regroup and continue serving its loyal fan base, ensuring that its pink-and-purple storefronts will not disappear from the high street just yet.
