Modella Capital, the private equity firm that owns Hobbycraft, has bought 156 Claire’s stores in the UK and Ireland out of administration, securing the immediate future of around 1,000 employees. However, the firm warned that “inevitable” store closures and job losses would follow as it negotiates with landlords over how many outlets can remain open.
The remaining 145 UK Claire’s stores, which employ another 1,000 people, have not been taken on by Modella and will continue to be run by administrators at Interpath. Will Wright, Interpath’s UK chief executive, 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.”
Claire’s UK arm called in administrators last month after sales fell amid competition from online retailers such as Amazon and the rise of social media platforms like TikTok. The US and Canadian operations had filed for bankruptcy for the second time in seven years in August, prompting the collapse of the parent group.
Joseph Price, 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, which also recently acquired WH Smith’s high street arm and renamed it TG Jones, 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 that owns the intellectual property. Founded in 1961, Claire’s operates more than 2,750 stores across 17 countries.
