Claire’s attracts bids from retail heavyweights following collapse into administration

Two major retail investors - the new owner of WH Smith’s high street operations and the entrepreneur behind HMV’s turnaround - are in the running to acquire Claire’s, the accessories brand that entered administration last month.

Modella Capital, which plans to rebrand hundreds of WH Smith stores as TG Jones, has submitted a formal bid for Claire’s UK and Ireland operations within the past ten days, according to Sky News.

Doug Putman, whose Sunrise Records acquired HMV in 2019, has also made an offer. Putman previously attempted to purchase Wilko after its collapse in 2023, but was ultimately unsuccessful.

It remains unclear which bidder is leading the process or whether additional parties are in discussions with administrators at Interpath Advisory, which is overseeing the company’s restructuring.

Claire’s, a long-standing presence in UK high streets and shopping centres and particularly well known among teenage shoppers, appointed administrators last month. The move put 2,150 jobs at risk across its 278 stores in the UK and 28 in Ireland.

Interpath stated it would continue to operate all stores while evaluating strategic options for the business, including a potential sale.

Claire’s has been contending with declining sales and intensifying competition from both online platforms and other brick-and-mortar retailers.

The company’s profitability has been particulally impacted by inflation, rising labour costs, supply chain disruption, and US tariffs on Chinese imports. These factors have compressed margins and contributed to a loss of market share to those targeting the same youth demographic.

It is the latest in a growing list of high street retailers struggling to adapt to shifting consumer behaviour, as more shoppers turn to digital channels for fashion and accessories.