Claire’s Rescues Half of Its UK and Ireland Stores with Modella Capital Acquisition

Claire’s is trying to emerge from bankruptcy in the UK. The children’s and teen accessories company has sealed the sale of 156 stores in the UK and Ireland to private equity firm Modella Capital, owner of WH Smith and Hobbycraft, which also secures the future of 1,000 jobs. However, the remaining 145 stores along with their 1,000 employees still have an uncertain future, as they will remain in the hands of the administrators. The price of the sale has not been disclosed.

Modella Capital has rescued half of the Claire’s network of stores in the UK and Irish market, specifically 156 stores along with their 1,000 employees. The private equity firm warned, however, that “it was inevitable that this acquisition would result in the closure of some stores and job losses” in the future, as could be the case for the nearly 1,000 jobs in the remaining 145 stores.

Will Wright, CEO of Interpath, the manager of the company’s business in the country since its entry into competition, stated that “our intention is to continue to market the remaining portfolio of stores for as long as possible, while we explore the options available.“

Claire’s sold its North American business and will cease to operate in France as well

Claire’s has, since 2018, been going through difficulties that it has not been able to resolve. The company, which operates more than 2,300 stores in seventeen countries in North America and Europe, drags a debt of $690 million.

In mid-August, the children’s and teen accessories company initiated bankruptcy proceedings in the United Kingdom and Ireland, appointing Interpath Advisory as administrator of the store network, which evaluated the company’s options while continuing its activity.

On August 20th, Claire’s announced the sale of its North American business to private equity firm Ames Watson, without disclosing the sale price and after filing for bankruptcy in an attempt to reduce its losses. France is another of the markets where Claire’s will cease to operate, with the Paris commercial court declaring the company in redressement judiciare (equivalent to bankruptcy) last month.