Claire’s has initiated a promotion offering a 40% discount on all items in their stores following their entry into administration. The popular teen jewelry and accessories retailer enlisted administrators for its UK and Ireland operations in August after declaring bankruptcy in the US.
Subsequently, Claire’s announced the sale of 156 high street outlets to investment group Modella Capita as part of a rescue strategy, excluding the remaining 145 stores. Customers have been quick to notice significant markdowns in stores, with one individual sharing on social media about the ongoing promotion offering 40% off everything except piercing items and 50% off hair accessories.
While it remains uncertain if the discounts are available in all Claire’s stores, it is advisable to visit your local branch to explore potential savings. 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, securing the majority of Claire’s UK business and assets to sustain the brand’s presence in the UK.
Claire’s initially filed for bankruptcy in 2018 due to loan repayment difficulties, leading to its control by former creditors such as investment firms Elliott Management Corp and Monarch Alternative Capital LP. Reports indicate that Claire’s accumulated losses of £25 million over the past three years, with a £4.7 million loss reported for the year ending March 2024 and a decline 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In other retail news, the WH Smith brand has been replaced by TGJones on high streets following its acquisition by Modella Capital for £76 million. The deal excluded the WH Smith travel division, encompassing locations in airports, train stations, and hospitals. Modella Capital, known for investing in retailers, has previously supported chains like Hobbycraft and Paperchase.
Meanwhile, Poundland has shut down numerous stores after being acquired by investment firm Gordon Brothers for £1. The budget retailer, which recently had its restructuring plan approved in the High Court, previously operated around 800 stores. Poundland anticipates a reduction in its store estate to between 650 and 700 due to recent closures and expiring leases.
Furthermore, Poundland plans to close its distribution center in Darton, South Yorkshire, and its national distribution center in Bilston, West Midlands, by early 2026.