Modella Capital buys Claire’s UK and Irish business

Claire’s does have a future in the UK and Ireland after it emerged on Monday that Hobbycraft owner Modella Capital will buy most of the business.

The investment firm is taking on 156 Claire’s stores from administrator Interpath Advisory for an undisclosed sum, with around 1,000 jobs saved.

But that’s only just over half of the full store estate with another 145 locations that Interpath will continue to operate while it assesses options for them.

The business, whose global operations have faced the same crisis as in the UK, saw its original US operation acquired out of bankruptcy by private equity firm Ames Watson for $140 million earlier this month.

The UK and Irish business went into administration just over a month ago after attempts to sell it as a going concern proved fruitless. Potential buyers appeared to get cold feet as the extent of its problems emerged. 

The accessories chain had once been hugely popular but struggled in the face of rising e-tail competition. US tariffs added to the problem this year with many of its products being made in China and the parent company also being heavily indebted.