Modella Capital, the investor behind WH Smith’s UK acquisition, and Doug Putman, who rescued HMV in 2019, are competing to buy the UK operations of Claire’s, which entered administration last month.
The deal would cover 278 UK stores, 28 outlets in Ireland, and around 2,150 employees. Claire’s, a long-standing high street retailer popular with teenage shoppers, had been running a sale process prior to administration, though other potential buyers—including turnaround specialist Hilco Capital—reportedly walked away.
Sky News understands that Modella made a formal offer to purchase Claire’s from administrators Interpath in the past ten days, while Putman has also tabled a bid. It remains unclear which party is currently leading the process or whether additional bidders are involved.
Claire’s US parent company filed for Chapter 11 bankruptcy protection a week before the UK administration. It has since agreed to sell up to 950 of its US stores to private equity firm Ames Watson.
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Will Wright, UK CEO at Interpath, said: “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.”
Sources suggest a buyer would likely reduce the estate to roughly 100 stores, retaining only the locations considered commercially viable.
Modella’s acquisition of Claire’s would further cement its reputation as one of the UK’s most active retail investors, following its purchase of 480 WHSmith shops for £40m earlier this year.
Interpath, Modella, and Putman declined to comment on ongoing talks.
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