Claire’s Accessories stores in Britain could be saved by the owner of WH Smith’s high street shops, after the brand’s parent company filed for bankruptcy in the US. Modella Capital, which owns TG Jones, the brand taking on WH Smith’s high street presence, has emerged as the front runner to buy Claire’s Accessories’ UK operations.
Claire’s Accessories, known for jewelry and accessories popular with young girls, appointed administrators for its UK and Ireland business last month after filing for bankruptcy in the US. Sky News reports that Modella is now in direct talks with the brand’s parent company, Ames Watson, after advisory firm Interpath was instructed to seek out potential buyers for a possible sale.
There is no guarantee that a deal will be struck and Modella would still need to reach a separate agreement with Interpath. Modella also owns arts and crafts retailer Hobbycraft, and has invested in Paperchase and Tie Rack.
The TG Jones brand will soon replace WH Smith in stores across the country as the latter retailer moves to focus solely on its lucrative travel hub business. Claire’s has estimated assets and liabilities each between $1billion and $10billion, and 25,001 to 50,000 creditors.
The group previously declared bankruptcy in 2018 after it was unable to repay a loan, but rebounded seven months later after wiping approximately $1.9billion from its balance sheet. The retailer has two shops on Oxford Street in London, and further branches in sites such as the Westfield and Brent Cross shopping centres and the O2 in Greenwich.
Its British arm made losses of £25million over the last three years. The most recent figures showed it made a loss of £4.7million in the year to Match 2024, representing an improvement from the £5million loss the previous year.
The group, which has nearly 300 stores across Britain, faces a looming deadline for an outstanding $480million, or £355million, loan that has to be repaid by December 2026.