Embattled retailer Claire’s Accessories has been saved after they agreed to sell 156 stores to the owner of WH Smith’s high street shops.
The popular fashion accessories chain has been brought out of administration by Modella Capital, securing around 1,000 jobs.
However, the future of 145 stores not included in the deal remains uncertain.
Claire’s Accessories, known for jewellery and accessories popular with young girls, appointed administrators for its UK and Ireland business last month after filing for bankruptcy in the US.
Administrators at Interpath said the majority of Claire’s UK business and assets had been sold to Modella, securing its future on British high streets.
It comes after Modella, which recently bought WH Smith’s high street chain, reached a deal with the retailer’s US parent firm Ames Watson.
Natasha Harbinson, managing director at Interpath 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.”
Interpath said 145 Claire’s shops were not included as part of the deal, and will stay open as usual while it continues to assess options for them.
The popular fashion accessories chain has been brought out of administration by Modella Capital, securing around 1,000 jobs. Pictured: Claire’s on Oxford Street, London
Modella also owns arts and crafts retailer Hobbycraft, and has invested in Paperchase and Tie Rack.
The TG Jones brand will soon replace WH Smith in stores across the country as the latter retailer moves to focus solely on its lucrative travel hub business.
Claire’s has estimated assets and liabilities each between $1billion and $10billion, and 25,001 to 50,000 creditors.
The group previously declared bankruptcy in 2018 after it was unable to repay a loan, but rebounded seven months later after wiping approximately $1.9billion from its balance sheet.
The retailer has two shops on Oxford Street in London, and further branches in sites such as the Westfield and Brent Cross shopping centres and the O2 in Greenwich.
Its British arm made losses of £25million over the last three years. The most recent figures showed it made a loss of £4.7million in the year to Match 2024, representing an improvement from the £5million loss the previous year.
The group, which has nearly 300 stores across Britain, faces a looming deadline for an outstanding $480million, or £355million, loan that has to be repaid by December 2026.
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