Claire’s has initiated a 40% discount on “everything” in its stores following its administration filing. The popular teen jewelry and accessories retailer appointed administrators for its UK and Ireland operations in August after declaring bankruptcy in the US.
As part of a rescue strategy, Claire’s disclosed the sale of 156 high street shops to Modella Capital, excluding its remaining 145 stores. Customers have noticed significant markdowns in stores, with one individual sharing on social media about the current promotion offering 40% off everything (excluding piercing) and 50% off hair accessories.
While it remains uncertain if all Claire’s stores are running the sales, it is advisable to visit local branches to explore potential discounts. Will Wright, UK chief executive at Interpath, the firm managing the administration process, confirmed the sale of the majority of Claire’s UK business and assets to Modella Capital, ensuring the brand’s continued presence on UK high streets.
Claire’s initially filed for bankruptcy in 2018 due to loan repayment difficulties and has since 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In other retail news, the WH Smith brand has been replaced by TGJones on high streets after Modella Capital acquired WH Smith for £76 million. The deal excluded the WH Smith travel division, specialized in airport, train station, and hospital shops. Modella Capital, known for investing in retailers like Hobbycraft and Paperchase, focuses on retail investments.
Poundland has closed multiple stores after being sold to investment firm Gordon Brothers for £1, as part of its approved restructuring plan. The budget retailer, with around 800 stores before the sale, anticipates reducing its store estate to between 650 and 700 due to closures and expiring leases. Poundland also plans to shut down its distribution center in Darton, South Yorkshire, and its national distribution center in Bilston, West Midlands, by early 2026.