Claire’s saved in rescue deal but 1,000 jobs remain at risk

Claire’s has been bought out of administration in a sale that includes “substantially most” of its business and assets.

The fashion accessories retailer has been sold to Modella Capital which also owns Hobbycraft, Original Factory Shop and TG Jones.

The transaction includes 156 Claire’s stores in the UK and Ireland transferring to Modella in a deal that will preserve around 1,000 jobs.

However, a further 1,000 employees will not transfer to Modella.

Natasha Harbinson, managing director at Interpath who led the sales process, said: “Following an agreement between Modella Capital and Ames Watson in the US in relation to the Claire’s brand, we are pleased to confirm a sale of the majority of Claire’s UK business and assets which will ensure this popular brand will continue to trade on high streets up and down the UK.

“In addition, we are also pleased to have secured a sale of the Claire’s business in Switzerland. Discussions with other interested parties continue in relation to the Claire’s entities in France, Italy and Poland.”

Claire’s entered administration in August after its parent company, Claire’s Holdings, commenced Chapter 11 proceedings in the US.

The 145 stores not included in the transaction will remain open and will continue to trade while the administrators  assess options for them.

Will Wright, Interpath’s UK chief executive and joint administrator, added: “We’d like to express our sincere thanks to the thousands of Claire’s dedicated employees, as well as suppliers and other key stakeholders, who have supported us throughout the administration process.

“Our intention is to continue to trade the remaining portfolio of stores for as long as we can, while we explore the options available.”