Modella Capital leads race to acquire Claire’s UK arm

Modella Capital is leading the race to acquire the UK arm of Clire’s, after reportedly agreeing the outline of a deal with Ames Watson, the new US-based owner of Claire’s, Sky News has reported. 

The London-based investor, which bought WH Smith’s high street business earlier this year, is said to be leading the race for the chain ahead of rival bids from Dragons’ Den judge Touker Suleyman and HMV owner Doug Putman.

Having taken control of Claire’s brand and US operations, Ames Watson is understood to have sought minimum financial guarantees from potential buyers as part of the negotiations. 

Sources close to the process said on Wednesday (17 September) that Modella has yet to agree a separate arrangement with Interpath Advisory, the administrators handling Claire’s UK business. While a deal is not guaranteed, people familiar with the talks said Modella’s discussions with Ames Watson make an agreement more likely.

Claire’s trades from 278 UK stores and 28 in Ireland, employing around 2,100 staff across both markets. Interpath said last month that all stores would continue trading while options for the business were explored.

Modella has emerged as one of the most active buyers of high street retailers in recent months. As well as rebranding WH Smith’s shops under the name TG Jones, it has taken ownership of The Original Factory Shop and Hobbycraft, both of which it has since restructured.

Claire’s collapse came a week after its US parent filed for Chapter 11 bankruptcy protection. The retailer had been owned by former creditors Elliott Management and Monarch Alternative Capital following a previous restructuring.

The collapse followed mounting pressure across the retail industry, with firms citing the rise in employers’ national insurance announced by chancellor Rachel Reeves last autumn. Both Poundland and River Island have recently secured creditor backing to cut rents and close stores.

Modella Capital has been approached for comment.