Claires Accessories store sale puts thousands of jobs at risk as Modella Capital steps in

Thousands of jobs are under threat at Claire’s Accessories following the acquisition of half the UK and Ireland store portfolio by Modella Capital in a move that signals significant upheaval for the troubled high street retailer. Interpath administrators confirmed that 156 of 301 Claire’s stores have been sold to Modella, owner of the recently rebranded TG Jones (formerly WH Smith), as well as The Original Factory Shop and Hobbycraft. The financial details of the deal remain undisclosed.

The transaction offers a potential lifeline for more than 1,000 roles, according to Modella’s managing director, Joe Price, who expressed a commitment to keeping Claire’s presence on the high street. However, the future remains precarious for the remaining 145 stores, with the threat of closure placing an additional 1,000 jobs at risk. Interpath did not specify which branches have been saved, noting that unsold stores will continue trading while alternative options are examined.

Claire’s has struggled in recent years, recording losses totalling £25 million over the past three years as the company laboured under heavy debts and sluggish trading. Signs of deepening financial distress emerged last month when managers were informed bailiffs might arrive to recover outstanding debts, and shortly afterwards, the company halted online sales and entered administration.

Modella’s enthusiasm as a buyer comes on the back of several high-profile retail acquisitions, including its £76 million purchase of WH Smith’s high street estate and the subsequent rebranding to TG Jones. Regarding the newly acquired Claire’s stores, the firm highlighted that store closures and redundancies are inevitable, given ongoing landlord discussions. No definitive list of stores earmarked for closure or continued trading will be established until further negotiations are completed.

Staff have been briefed on the uncertainty, with no guarantees provided regarding their positions. Management at Modella emphasised the scale of the challenges, calling for all stakeholders to collaborate if the retailer is to have a viable future. Claire’s is also pressured by a $480 million (£355 million) loan scheduled for repayment in December 2026, exacerbating the urgency to secure a turnaround.

The high street’s turbulence continues, with Claire’s Accessories’ fate now hinging on complex negotiations amid a backdrop of rising sector-wide uncertainty and shifting consumer habits. All eyes remain on how Modella’s rescue plan will play out and whether it can halt further contractions in the sector’s workforce.