Modella Capital emerges as front-runner to buy Claire's UK operations

Modella Capital, the owner of high‑street operator TG Jones and arts-and-crafts retailer Hobbycraft, has emerged as the front‑runner to acquire Claire’s Accessories’ operations in the UK after the jewellery and accessories chain’s US parent filed for bankruptcy.

Sky News reported that Modella is in direct talks with Ames Watson, Claire’s parent company, following instructions to advisory firm Interpath to seek buyers for the British and Irish business. There is no guarantee a deal will be reached and any acquisition would require a separate agreement with Interpath.

Claire’s, known for accessories popular with younger shoppers, appointed administrators for its UK and Ireland business last month after its parent company in the United States filed for bankruptcy protection. The group operates nearly 300 stores across Britain, including locations on Oxford Street and in major centres such as Westfield, Brent Cross and the O2 in Greenwich.

Modella Capital owns TG Jones, the brand set to replace WH Smith on many high streets as WH Smith refocuses on its travel hub business, and has invested in other retail names including Paperchase and Tie Rack. The firm’s interest follows broader efforts by administrators and advisers to find buyers or rescue options for the chain amid mounting financial pressure.

Claire’s has disclosed estimated assets and liabilities each in the range of $1 billion to $10 billion and lists between 25,001 and 50,000 creditors on its filings. The group faces a separate, sizeable financing challenge at the parent level, with an outstanding $480 million (about £355 million) loan that must be repaid by December 2026.

The company previously went through a formal restructuring in 2018 after failing to repay a loan; it later said it had removed roughly $1.9 billion from its balance sheet as part of that process. The British arm has reported losses of about £25 million over the past three years, with a loss of £4.7 million in the year to March 2024, a slight improvement from a £5 million loss the prior year.

Administrators and advisers have been exploring sale options against a backdrop of shifting retail dynamics, in which several midmarket chains have sought rescue deals, asset sales or restructuring to contend with rising costs and changing consumer habits. Any transaction would be subject to due diligence, potential regulatory checks and negotiations over property leases and staff arrangements.

Should Modella or another buyer complete a purchase, it would follow a pattern of private equity and specialist retail operators consolidating struggling high‑street brands. For Claire’s UK employees and store landlords, a sale could preserve jobs and tenancies; however, administrators have cautioned that outcomes depend on offers received and the commercial terms that prospective buyers can secure.

Claire’s, Modella Capital and Interpath did not immediately respond to requests for comment. Sky News first reported the talks, and the discussions were confirmed to administrators and advisers engaged in the process.