Owner of TG Jones emerges as frontrunner to buy Claire's UK operations

Modella Capital, owner of the TG Jones and Hobbycraft brands, has emerged as the frontrunner to acquire Claire's Accessories' operations in the UK after the jewellery and accessories chain's parent company filed for bankruptcy in the United States.

Claire's Accessories appointed administrators for its UK and Ireland business in August, following the parent company's US bankruptcy filing. Sky News reported that Modella is in direct talks with Claire's parent, Ames Watson, after advisory firm Interpath was instructed to seek potential buyers for a possible sale. There is no guarantee a deal will be reached, and Modella would still need to reach a separate agreement with Interpath.

Modella owns TG Jones, the brand intended to replace WH Smith's high street presence as WH Smith shifts to concentrate on its travel-hub business. The private investment firm also owns arts and crafts retailer Hobbycraft and has made investments in Paperchase and Tie Rack.

Court filings related to Claire's parent show estimated assets and liabilities each in the range of $1 billion to $10 billion and list between 25,001 and 50,000 creditors. The group, which operates nearly 300 stores across Britain, faces a looming repayment deadline on an outstanding $480 million (about £355 million) loan due in December 2026.

Claire's has previously navigated financial distress. The group declared bankruptcy in 2018 after failing to repay a loan and subsequently restructured, which included a roughly $1.9 billion reduction to its balance sheet before returning to operations several months later.

The retailer's UK arm has reported losses in recent years. Financial statements show a cumulative loss of about £25 million over the last three years, with the most recent annual figures indicating a £4.7 million loss in the year to March 2024, an improvement from a £5 million loss the prior year.

Claire's operates two stores on London's Oxford Street and has branches in major shopping centres such as Westfield and Brent Cross, as well as at the O2 in Greenwich. Administrators and potential buyers are assessing the viability of the UK estate as part of the sale process.

Interpath was appointed to advise on the sale and to solicit offers after the parent company entered bankruptcy proceedings in the US. Sources close to the process told reporters that discussions are at a preliminary stage and that any transaction would be subject to due diligence, regulatory approvals and agreement on commercial terms.

Retail sector analysts said earlier this year that high street and speciality retailers face mounting pressure from weak consumer spending and high operating costs, though none of those analysts' comments were tied directly to the current negotiations. Claire's prominence in the market comes from its focus on jewellery and accessories popular with young shoppers, a demographic that has driven the chain's long-standing presence on British high streets.

If a purchase by Modella were completed, it could preserve at least some of Claire's UK stores and staff, but administrators stressed that options remain under consideration and that outcomes will depend on the progress of negotiations and the results of the sales process.

Ames Watson and Modella Capital did not immediately respond to requests for comment. Interpath declined to comment on ongoing proceedings.