Competitors vying for control over Claire's, with WH Smith and HMV in pursuit of a potential takeover

In a recent development, Modella Capital has made an offer to buy Claire's, the popular accessories retailer, from administrators Interpath. This comes after Claire's filed for insolvency and has been trading its 278 UK shops and 28 Irish stores while assessing options for the business.

Claire's, a fixture in British shopping centres and town centres for decades, has been particularly popular among teenage shoppers. The company was previously owned by Elliott Management and Monarch Alternative Capital following a financial restructuring.

Modella Capital's bid, if successful, would underline its status as the most prolific new investor in British retailing. The company already owns The Original Factory Shop and Hobbycraft.

However, it is unclear which of the two bidders, Modella Capital and Doug Putman who rescued HMV in 2019, is ahead in the battle to buy Claire's, or whether any other parties are in discussions with Interpath.

The collapse of Claire's UK operations occurred a week after its US parent company filed for Chapter 11 bankruptcy protection. The restructuring firm Interpath appointed as administrators for Claire's had been running a sale process prior to its appointment, but bidders including the turnaround specialist Hilco Capital walked away from the auction.

Scores of shops are likely to close if a buyer acquires Claire's UK business. This is a concerning development for the roughly 2,150 people who work across the business, making Claire's one of the biggest high street chains to fall into insolvency this year.

Interpath declined to comment on talks with prospective buyers this weekend, and both Modella Capital and Mr. Putman did not respond to enquiries from our website.

Meanwhile, other retailers have also been struggling. Both Poundland and River Island recently survived creditor votes, allowing them to slash rents and close dozens of stores. Claire's US counterpart has agreed to sell up to 950 of its stores to Ames Watson, a private equity firm.

Will Wright, UK chief executive at Interpath, expressed intentions to operate all stores as a going concern while assessing options for the company. This suggests that there is still hope for Claire's, even as it navigates through this challenging period.

As the situation unfolds, we will continue to monitor developments and provide updates on this story.

Competitors vying for control over Claire's, with WH Smith and HMV in pursuit of a potential takeover