Hilco Capital, the investor behind Lakeland and backer of high street names including Superdry and HMV, is preparing a bid for Claire’s UK business, which runs approximately 280 stores across the country.
The move follows the jewellery retailer’s recent appointment of Interpath Advisory to explore a sale and restructuring options amid mounting cost pressures and debt concerns.
The business faces a £355m repayment due in December 2026 and has been navigating challenging market conditions that impacted sales and profitability.
Claire’s UK sales fell slightly last year, while pre-tax losses narrowed, highlighting ongoing difficulties.
The company’s owners, including Elliott Management, Monarch Alternative Capital and JP Morgan, have also been seeking potential buyers for Claire’s global operations, which total around 2,750 stores.
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Sky News reports that Hilco is expected to be among several bidders, alongside investors such as Alteri and Modella Capital — the latter having recently acquired WHSmith’s high street arm.
Industry insiders caution that any deal could lead to significant store closures, with estimates suggesting up to a third of UK shops may be shuttered to stabilise the business.
The US arm of Claire’s is reportedly exploring bankruptcy protection, with advisers considering all options to safeguard the company’s future.
Claire’s has been a staple on UK high streets and in shopping centres for decades, but increasing cost pressures and shifting consumer behaviour have accelerated its struggles, prompting this sale process.
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