Modella Capital Rescues Claire's UK and Ireland Operations
Claire's, the beloved accessories retailer, has secured a significant future in the UK and Ireland following an acquisition by Modella Capital, the investment firm behind Hobbycraft. This development, announced on Monday, brings a crucial lifeline to a business that has faced considerable challenges, ensuring its continued presence on high streets and in shopping centres across both regions.
The deal sees Modella Capital acquire 156 Claire's stores from administrator Interpath Advisory for an undisclosed sum. This strategic purchase is set to safeguard approximately 1,000 jobs, providing much-needed stability for employees. However, it's important to note that this transaction covers just over half of Claire's full store estate, with Interpath Advisory continuing to operate another 145 locations as it evaluates various options for their future.
This positive turn for the UK and Irish operations comes amidst broader global struggles for Claire's, whose international presence has mirrored the difficulties experienced locally. Just earlier this month, the original US operation was acquired out of bankruptcy by private equity firm Ames Watson in a deal valued at $140 million, highlighting a pattern of restructuring and re-investment across the company's various divisions.
The UK and Irish business had entered administration just over a month ago after earnest attempts to sell it as a going concern proved unsuccessful. Potential buyers reportedly became hesitant as the full extent of the company's financial and operational difficulties came to light, leading to a critical juncture for the once-ubiquitous brand in these markets.
Claire's, historically a hugely popular destination for accessories and ear piercings, had found itself increasingly struggling against the tide of rising e-commerce competition. Further compounding its woes this year were the implications of US tariffs, particularly given that many of its products are manufactured in China. Adding to these pressures was the significant debt burden carried by the parent company, collectively creating a challenging environment that ultimately necessitated this restructuring.
