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 their UK and Ireland branches in August after facing bankruptcy proceedings in the US.
As part of a rescue plan, Claire’s revealed the sale of 156 high street outlets to investment group Modella Capital while excluding the remaining 145 stores from the deal. Customers have already noticed significant markdowns, with one individual sharing on social media about the ongoing promotion offering 40% off everything except piercing items and 50% off on hair accessories.
Although the extent of the sales across all Claire’s stores remains unclear, it is advisable to visit your local store to explore potential discounts. Will Wright, the UK chief executive at Interpath overseeing the administration process, expressed satisfaction with the agreement between Modella Capital and Ames Watson in the US, securing the sale of the majority of Claire’s UK business and assets to ensure the brand’s continued presence on UK high streets.
Claire’s initially filed for bankruptcy in 2018 due to loan repayment challenges and has since been under the control of 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 reported loss of £4.7 million in the year ending March 2024 and a decrease in turnover to £137 million.
In other retail developments, the WH Smith brand has been replaced by TGJones on high streets after Modella Capital acquired WH Smith for £76 million. The deal excluded the WH Smith travel division, encompassing stores in airports, train stations, and hospitals. Modella Capital, known for investing in retailers, has previously funded chains such as Hobbycraft and Paperchase.
Furthermore, Poundland has shuttered numerous stores after being acquired by investment firm Gordon Brothers for a nominal fee. The budget retailer, which recently had its restructuring plan approved by the High Court, previously operated around 800 stores. Poundland anticipates reducing its store estate to between 650 and 700 through the latest closures and lease expirations.
Additionally, Poundland will close its distribution center in Darton, South Yorkshire, and its national distribution center in Bilston, West Midlands, in early 2026.
