Modella and HMV owner compete for Claire’s Accessories
Modella Capital, the investor behind WH Smith’s UK acquisition the man responsible for rescuing HMV are locked in a battle to buy struggling high street chain Claire’s.
Claire’s appointed administrators for its UK arm in August, just a week after it filed for bankruptcy in the US and entered administration in France.
The company had been considering a sale prior to entering administration, although potential buyers reportedly walked away from the high street retailer.
A deal to save the firm would cover 278 UK stores, 28 outlets in Ireland, and around 2,150 employees.
Modella made a formal offer to purchase Claire’s from administrators Interpath in the past ten days, while Douglas Putman, who has overseen a stellar turnaround at HMV after saving it from collapse in 2019, has also tabled a bid, according to Sky News.
Sources suggest a buyer would likely reduce the estate to roughly 100 stores, retaining only the locations considered commercially viable, according to Sky.
It remains unclear which of the two are ahead in the battle to buy Claire’s.
Will Wright, UK chief executive at Interpath, said last month: “Claire’s has long been a popular brand across the UK, known not only for its trend-led accessories but also as the go-to destination for ear piercing.
“Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company.
“This includes exploring the possibility of a sale which would secure a future for this well-loved brand.
UK high street under pressure
The UK’s high street has been struggling to compete with online shoppers and experiential purchases for years, but a spike in retailers’ tax bill has pushed many companies to breaking point.
Business rates, increasing taxes and low footfall have all heaped pressure on stores, with 360,000 jobs lost in retail in the last decade.
High-street peers like Miss Selfridge, Dorothy Perkins and Debenhams have already disappeared and become online-only.
River Island was saved from the brink of administration in August after a High Court judge approved its restructuring plan, while WHSmith sold its high street arm to Modella.
Poundland, too, recently survived a creditor vote – although it is set to slash rents and close dozens of stores.
Claire’s declined to comment. Putnam and Modella did not immediately respond to a request for comment.