Embattled fashion accessories retailer Claire’s has been bought out of administration by Modella Capital, which owns retailers TG Jones, Hobbycraft and the Original Factory Shop.
The acquisition will see the remaining 156 Claire’s stores in the UK and Ireland remain open and transfer to Modella Capital, preserving around 1,000 jobs.
Interpath managing director Natasha Harbinson who led the sales process, said: “Following an agreement between Modella Capital and Ames Watson in the US in relation to the Claire’s brand, 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.
“In addition, we are also pleased to have secured a sale of the Claire’s business in Switzerland. Discussions with other interested parties continue in relation to the Claire’s entities in France, Italy and Poland.”
The administrators said that 145 Claire’s stores were not in the acquisition and will remain open and continue to trade while the joint administrators “continue to assess options for them”.
Interpath’s UK chief executive and joint administrator Will Wright added: “We’d like to express our sincere thanks to the thousands of Claire’s dedicated employees, as well as suppliers and other key stakeholders, who have supported us throughout the administration process. 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 said it was “inevitable that this acqusition will result in some store closures and job losses”, but said its intervention “offers the potential to save over a thousand jobs across the UK and Ireland”. The private equity firm said it had also secured a “licence to trade in the UK and Ireland as Claire’s, from Ames Watson” - the US-based firm which owns the Claire’s IP, as well as it’s US and Canadian arms.
Modella Capital’s managing director Joe 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.”
No comments yet