Claire’s has initiated a sale offering a 40% discount on all items in their stores following their entry into administration. The popular teen jewelry and accessories retailer appointed administrators for its operations in the UK and Ireland in August, subsequent to filing for bankruptcy in the United States.
As part of a rescue strategy, Claire’s disclosed the sale of 156 high street outlets to Modella Capital, excluding the remaining 145 stores. Customers have observed significant markdowns in stores, with one shopper sharing on social media about the ongoing promotion offering 40% off everything except piercing items and a 50% discount on hair accessories.
It is uncertain if the sale applies to all Claire’s stores, hence it is advisable to visit your local branch to explore potential discounts. Will Wright, the UK chief executive at Interpath overseeing the administration process, expressed satisfaction with the sale of most of Claire’s UK business and assets to Modella Capital, securing the brand’s presence on UK high streets.
Claire’s initially filed for bankruptcy in 2018 due to loan repayment difficulties and has since been managed by former creditors, including investment firms Elliott Management Corp and Monarch Alternative Capital LP. Reports indicate that Claire’s accumulated £25 million in losses over the past three years, with a recorded £4.7 million loss in the financial year ending March 2024 and a decrease in turnover to £137 million.
In other retail news, the WH Smith brand has been replaced by TGJones on high streets following its acquisition by Modella Capital for £76 million. The transaction excluded the WH Smith travel division, which includes outlets in airports, train stations, and hospitals. Modella Capital specializes in retail investments and has previously supported chains such as Hobbycraft and Paperchase.
On a separate note, Poundland has shuttered numerous stores after being acquired by investment firm Gordon Brothers for £1. The budget retailer, with around 800 stores before the sale, foresees reducing its store count to between 650 and 700 due to recent closures and expiring leases.
Additionally, Poundland intends to close its distribution center in Darton, South Yorkshire, and its national distribution center in Bilston, West Midlands, by early 2026.
