Claire’s Faces New Legal Battle in the UK as Modella Capital Abandons Rescue Effort

Claire’s is back in court in the UK. Modella Capital, which rescued the company last year, has begun insolvency proceedings for the accessories chain in the UK and Ireland for the second time in less than a year.

Last September, Modella took over Claire’s UK business in a deal that saw the closure of 145 stores and the loss of around 1,000 jobs. Claire’s currently has 145 stores and 1,355 employees in the UK.

According to Modella, Claire’s has “no realistic chance of returning to profitability” and pointed out that its previous owners left it in a “highly vulnerable” position.

The investment firm, which also owns the British retail chains TGJones (formerly WHSmith) and Hobbycraft and was part of the consortium of bidders for the acquisition of The Body Shop, has also initiated insolvency proceedings for the British discount chain The Original Factory Shop (Tofs).

Claire’s entered bankruptcy in the US in August last year and has been falling in the rest of the world

“We have been working hard to save both companies, making desperate attempts to rescue them, but neither has a realistic chance of returning to profit,“ Modella said. “The trading climate continues to be extremely difficult and Tofs and Claire’s are not alone in experiencing difficulties,“ he added.

Founded in 1974, Claire’s specializes in jewelry, cosmetics, accessories and piercing for girls and teens between the ages of 3 and 18. The company, which has been experiencing difficulties since 2018, entered bankruptcy in August 2025 in the United States. Among the reasons for its entry into court was a bulging debt, falling consumption in its home market and rising costs due to the new U.S. tariff policy.

At the end of August, the company transferred its business in its local market to the investment group Ames Watson, while in the world’s main markets its subsidiaries filed for the equivalent of bankruptcy. In the United Kingdom, the process ended with the sale to Modella Capital.