Lakeland owner Hilco in race to acquire Claire’s

Hilco Capital, the high street investor behind Lakeland and a former backer of HMV and Superdry, is considering a takeover of Claire’s UK business, according to Sky News.

Banking sources have told the outlet that Hilco Capital, who was a recent contender to acquire Poundland, is among the potential bidders for the British arm of the jewellery and accessories chain. 

Other interested parties reportedly include Alteri Investors and Modella Capital, which recently acquired WH Smith’s high street stores. 

It comes following reports earlier this month that Claire’s had appointed Interpath Advisory to oversee a sale of the UK business. The move comes as its US-based operations explore strategic options, including bankruptcy.

Advisers have reportedly warned prospective buyers that a deal could result in a substantial number of UK store closures. One retail executive suggested that as many as a third of stores could be affected, placing hundreds of jobs at risk.

Claire’s, owned by former creditors Elliott Management and Monarch Alternative Capital after a previous financial restructuring, operates around 2,000 stores globally, including 280 in the UK.

Sky News has learnt that investment bank Houlihan Lokey is managing the sale of Claire’s US business.

Claire’s UK arm has reported cumulative losses of £25m over the past three years. Accounts for the year to March 2024 show a loss of £4.7m, slightly narrower than £5m the previous year, on turnover of £137m.

Hilco and Claire’s have been contacted for comment.