Claire’s has initiated a sale offering a 40% discount on “everything” in its stores following its entry into administration. The popular teen jewelry and accessories retailer had administrators appointed for its UK and Ireland operations in August, subsequent to its bankruptcy filing in the US.
As part of a rescue strategy, Claire’s disclosed the sale of 156 high street outlets to investment group Modella Capital; however, this deal did not encompass its remaining 145 stores. Customers have observed significant price reductions in stores, with one individual sharing on social media about the ongoing promotion offering 40% off everything (excluding piercings) and a 50% discount on hair accessories.
Although it remains unclear if these sales are universal across all Claire’s stores, it is advisable to visit your local branch 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 regarding the Claire’s brand, ensuring the continuity of this beloved brand on high streets throughout the UK.
Having initially filed for bankruptcy in 2018 due to an inability to repay a loan, Claire’s has been under the control of former creditors, including investment firms Elliott Management Corp and Monarch Alternative Capital LP. The company reportedly incurred £25 million in losses over the past three years, with a £4.7 million loss in the year ending March 2024 and a decrease in turnover to £137 million.
In other retail news, the WH Smith brand has been replaced by TGJones on high streets, following its acquisition by Modella Capital for £76 million. Notably, the deal excluded the WH Smith travel division, encompassing shops in airports, train stations, and hospitals. Modella Capital specializes in investing in retailers, previously supporting chains like Hobbycraft and Paperchase.
On a different note, Poundland has closed numerous stores after being acquired by investment firm Gordon Brothers for a nominal fee of £1. The budget retailer, which recently obtained approval for its restructuring plan in the High Court, had approximately 800 stores before the transaction. Poundland anticipates reducing its store estate to between 650 and 700 due to the latest closures and expiring leases.
Furthermore, Poundland will shut down its distribution center in Darton, South Yorkshire, and its national distribution center in Bilston, West Midlands, in early 2026.