The private equity firm that owns Hobbycraft has agreed to save half of the Claire’s accessory chain stores in the UK and Ireland, though it cautioned that some job cuts and store closures are unavoidable.
Modella Capital announced it purchased 156 Claire’s stores in the UK and Ireland from administrators, protecting the immediate jobs of 1,000 employees. The firm expressed hope that it can revive this well-known and respected brand.
However, Modella warned that some store closures and job losses are inevitable as it discusses with landlords how many locations can remain open. An additional 145 UK Claire’s stores not acquired by Modella still put about 1,000 jobs at risk. These stores will continue to be managed by administrators at Interpath, who took over after the US parent company collapsed in August.
Modella, which acquired Hobbycraft last year, recently purchased WH Smith’s high street division, renaming it with the fictional family brand TG Jones. The firm has also previously supported the UK licensee of the fashion brand Ted Baker, which faced difficulties.
Will Wright, Interpath’s UK chief executive and joint administrator, stated that they plan to keep the remaining stores operating while exploring future options.
Claire’s UK division sought administration last month as sales declined due to competition from online retailers like Amazon and growing sales through social media platforms such as TikTok. This followed the US and Canadian branches of Claire’s filing for bankruptcy for the second time in seven years.
Founded in 1961, Claire’s has been a familiar presence in British shopping centers and high streets. The company, with over 2,750 stores across 17 countries in North America and Europe, is known for its ear-piercing services and jewelry, making it especially popular with teenagers.
Joseph Price, managing director of Modella, emphasized the firm’s belief that the beloved brand should continue to operate in the UK and Ireland. He acknowledged the significant challenges facing Claire’s and stressed the need for collaboration with all stakeholders to make the rescue plan work.
Modella also confirmed a separate agreement to license the Claire’s brand in the UK and Ireland from Ames Watson, the US-based owner of the brand’s intellectual property.
Frequently Asked Questions
Of course Here is a list of FAQs about the purchase of half of Claires stores in the UK and Ireland designed to be clear concise and in a natural tone
General Beginner Questions
1 What exactly happened to Claires
A rescue deal was made where a new company has purchased about half of the Claires stores in the UK and Ireland This was done to save the business from collapsing entirely
2 What is a rescue deal
A rescue deal is when a company in financial trouble is bought by another company or investor The goal is to save the most profitable parts of the business and keep it running rather than letting it close down completely
3 Which Claires stores are affected
The deal involves roughly half of the stores The new owners will decide which specific locations will stay open and which will close Not all stores are part of this new deal
4 Is Claires going out of business
No not entirely While many stores are at risk of closing the rescue deal means that a significant number of stores will continue to operate under new ownership
5 Will my local Claires store close
It depends on whether your local store was part of the half that was purchased The new owners are currently reviewing which locations will remain open Its best to check with your local store for updates
Impact on Jobs Customers
6 Why are jobs still at risk if there was a rescue deal
The rescue deal was for the stores not necessarily for all the jobs To make the saved business more financially stable the new owners will likely need to cut costs which can include reducing staff or closing some of the purchased stores
7 How many jobs could be lost
The exact number hasnt been confirmed but since only half the stores were purchased and some of those may still close a significant number of the employees from the unpurchased stores are at high risk of losing their jobs
8 I have a Claires gift card Can I still use it
For now you should be able to use it at any store that remains open However if a specific store is scheduled for closure they may stop accepting gift cards Its best to use your gift card as soon as possible at a store you know is staying open
