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Modella Capital along with Doug Putman, the businessman who rescued HMV, are both reportedly bidding to take over Claire’s UK operations after the fashion accessories chain fell into administration, according to Sky News.
Modella Capital, which this year agreed to buy WH Smith’s 480 UK high street stores and plans to rebrand them as TG Jones, has made an offer to administrators at Interpath within the past 10 days. Putman is also said to have submitted a bid.
Following its appointment as administrator in mid-August, Interpath is continuing to trade all 278 Claire’s shops in the UK and 28 outlets in Ireland while options for the business are explored. The collapse has placed around 2,150 jobs at risk, making it one of the biggest high street insolvencies of the year.
Claire’s has been a fixture in British town centres for decades and remains popular with teenage shoppers. A sale process was under way before administration, but earlier bidders including turnaround specialist Hilco Capital pulled out.
It is understood that any buyer of the UK arm is expected to close a significant number of outlets, with only around 100 thought to be sustainable.
Modella, already the owner of The Original Factory Shop and Hobbycraft, has been expanding rapidly across the sector. Its WH Smith deal was struck for £40m, after the price was reduced by £12m during negotiations.
Putman, who unsuccessfully attempted to buy Wilko in 2023 after its collapse, has also been linked to a series of UK retail rescue attempts.
The failure of Claire’s UK came a week after its US parent filed for Chapter 11 bankruptcy protection. The American business, previously owned by hedge funds Elliott Management and Monarch Alternative Capital, has since agreed to sell up to 950 US stores to private equity firm Ames Watson.
Modella Capital and Doug Putman have been approached for comment.
