By Anna Wise

Copyright independent

Fashion accessories retailer Claire’s has secured approximately 1,000 jobs after agreeing to sell 156 of its UK stores to investment group Modella Capital, administrators have confirmed.

Administrators at Interpath stated that the majority of Claire’s UK business and assets have been acquired by Modella, ensuring the brand’s continued presence on British high streets.

This agreement follows Modella, which recently purchased WH Smith’s high street chain, reaching a deal with Claire’s US parent firm, Ames Watson.

Natasha Harbinson, managing director at Interpath, who led the sales process, commented: “Following an agreement between Modella Capital and Ames Watson in the US in relation to the Claire’s brand, we are pleased to confirm a sale of the majority of Claire’s UK business and assets which will ensure this popular brand will continue to trade on high streets up and down the UK.”

The 145 Claire’s shops not part of the sale will remain open as usual while Interpath continues to assess options for their future.

The rescue deal comes after the US-owned company filed for bankruptcy in the US in August. It listed both its assets and liabilities in the $1 billion to $10 billion range in its Delaware filing.

Executives cited a perfect storm of challenges contributing to the company’s financial strain. One of the most pressing issues is the declining demand from younger shoppers.

This is especially Generation Alpha, who increasingly prefer online fashion experiences tied to social media platforms rather than traditional mall-based retail.

Claire’s is grappling with mounting pressure from fast-fashion and ultra-low-cost online retailers such as Shein, Temu, Amazon, and TikTok Shop.

These digital-first competitors are able to quickly respond to trends and offer products at prices traditional retailers struggle to match.