Modella Capital, the investor behind WH Smith's º£½ÇÊÓƵ acquisition, and the man credited with saving HMV, are embroiled in a contest to purchase the beleaguered high street chain Claire's.
Claire's appointed administrators for its º£½ÇÊÓƵ division in August, just one week after filing for bankruptcy in the US and entering administration in France, as reported by .
The Birmingham-headquartered company had been contemplating a sale before going into administration, although potential buyers reportedly backed out from the high street retailer.
A rescue deal would encompass 278 º£½ÇÊÓƵ stores, 28 outlets in Ireland, and approximately 2,150 employees.
Modella submitted a formal proposal to buy Claire's from administrators Interpath within the last ten days, while Douglas Putman, who has overseen a remarkable turnaround at HMV after rescuing it from collapse in 2019, has also put forward a bid, according to Sky News.
Insiders suggest that a prospective buyer would likely downsize the estate to around 100 stores, retaining only those locations deemed commercially viable, as per Sky.
It remains uncertain which of the two contenders is leading the race to acquire Claire's.
Last month, Will Wright, º£½ÇÊÓƵ chief executive at Interpath, stated: "Claire's has long been a popular brand across the º£½ÇÊÓƵ, known not only for its trend-led accessories but also as the go-to destination for ear piercing.
"Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company.
"This includes exploring the possibility of a sale which would secure a future for this well-loved brand."
º£½ÇÊÓƵ high street under pressure
The º£½ÇÊÓƵ's high street has been battling to rival online retailers and experiential spending for years, but a surge in retailers' tax obligations has driven many firms to crisis point.
Business rates, rising taxes and diminished footfall have all intensified pressure on shops, with 360,000 retail jobs vanishing over the past decade.
High-street counterparts such as Miss Selfridge, Dorothy Perkins and Debenhams have already vanished and transformed into online-only operations.
River Island was rescued from the edge of administration in August after a High Court judge endorsed its restructuring proposal, whilst WHSmith offloaded its high street division to Modella.
Poundland, likewise, recently weathered a creditor ballot – though it is poised to cut rents and shutter dozens of outlets.
Claire's declined to comment. Putnam and Modella did not immediately respond to a request for comment.
