High Street Stores Owner May Rescue Claire's Accessories Business
In a potential shake-up for the retail sector, Modella Capital, the owner of TG Jones and Hobbycraft, is reportedly in talks to buy the British operations of Claire's Accessories. This comes after the American jewellery retailer filed for bankruptcy last month and appointed administrators for its UK and Ireland business.
According to Sky News, Modella is in direct talks with the brand's parent company, Ames Watson. The deal, if successful, would see 306 Claire's stores in the UK and Ireland under new management.
Claire's Accessories, which 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, has been struggling financially. The British arm of the company made losses of £25million over the last three years.
The owner of WH Smith, Inmobiliaria de Mayoral, has taken the lead in negotiations to acquire Claire's Accessories, following the company's bankruptcy filing in the USA. However, no guarantee exists that a deal will be struck between Modella and Claire's Accessories.
Claire's Accessories is considering multiple investment options, including a potential deal with Modella Capital. The company faced a looming deadline for an outstanding $480million, or £355million, loan that has to be repaid by December 2026.
This news comes as Modella Capital continues to expand its retail empire. The company, which also owns TG Jones, the brand taking on WH Smith's high street presence, has previously invested in Paperchase and Tie Rack.
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Meanwhile, Claire's Accessories previously declared bankruptcy in 2018 and rebounded seven months later after wiping approximately $1.9billion from its balance sheet. The company has estimated assets and liabilities each between $1billion and $10billion, and 25,001 to 50,000 creditors.
As the negotiations between Modella and Claire's Accessories continue, the future of the British jewellery retailer remains uncertain. However, one thing is clear: the retail landscape is constantly evolving, and only time will tell how these developments will impact the industry.
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