Modella Capital, the private equity firm that owns Hobbycraft, has bought 156 Claire’s stores in the UK and Ireland, securing around 1,000 jobs, but warned that store closures and job losses are “inevitable”. The deal rescues half of the accessories chain’s outlets from administration, with the remaining 145 stores still under the control of administrators at Interpath.
The firm’s managing director, Joseph Price, 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 has also secured a licence to trade the Claire’s brand locally from intellectual property owner Ames Watson.
Claire’s UK arm entered administration last month after sales fell due to competition from online retailers like Amazon and the rise of social media shopping on platforms such as TikTok. This followed the US and Canadian parent filing for bankruptcy for the second time in seven years. Founded in 1961, Claire’s has been a staple in British shopping centres, known for its ear-piercing services and jewellery popular with teenagers.
Will Wright, UK chief executive at Interpath and joint administrator, 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.” Modella Capital, which also recently acquired WH Smith’s high street arm, has previously backed other retail ventures including Ted Baker’s ill-fated UK licensee.
