Owner of WH Smith’s high street chain frontrunner to buy Claire’s UK business

The new owner of WH Smith’s high street shops has emerged as a frontrunner in the bid to buy the UK operations of accessories chain Claire’s.

Investment group Modella Capital has been in talks with the retailer’s US parent firm Ames Watson over a possible deal.

Claire’s appointed administrators for its UK and Ireland business last month after filing for bankruptcy in the US.

The administrators at advisory firm Interpath have since been in talks with potential buyers about a possible sale to secure the future of the chain on British high streets.

But Modella is understood to have drawn up the outline of a deal directly with Ames Watson, as first reported by Sky News, meaning it could be in pole position to take over the UK chain.

There is no guarantee that a deal will be struck, and it would still need to reach a separate agreement with Interpath.

Claire’s 306 shops in the UK and Ireland have remained open as usual while advisers have assessed the options for the company.

Modella bought WH Smith’s high street chain earlier this year and is in the processing of rebranding shops to the name TGJones.

WH Smith’s travel division, which incorporates shops in airports, train stations and hospitals, was not included in the deal and will not change.

Modella has become a significant force in the British retail industry having bought arts and crafts retailer Hobbycraft last year, and previously putting money into chains including Paperchase and Tie Rack.

Interpath declined to comment on the reports. Modella also declined to comment.