Hilco makes surprise return to bid for Claire’s UK and Ireland

Hilco Capital has re-entered the race to acquire Claire’s UK and Ireland business, injecting fresh momentum into the high street chain’s sale just weeks after the Lakeland owner walked away from an earlier auction.

Hilco joins a growing list of suitors. 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. Hilco’s return signals a renewed competitive edge.

It remains unclear which bidder is leading the process or whether additional parties are in discussions with the administrators.

This comes after 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.

At the time, 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 while we assess options for the company."

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 particularly 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.