WH Smith buyer in race to save Claire’s after it crashed into administration and axed online orders

TWO retail heavyweights are vying to rescue Claire’s, the beloved high street accessories chain that fell into administration last month, threatening over 2,150 jobs.

Modella Capital, the new owner of WH Smith’s high street stores, and Doug Putman, the saviour of HMV, have both put forward bids to acquire the UK arm of the struggling retailer, according to Sky News.

Claire’s, a staple for teenage shoppers and a go-to destination for ear piercings, has been grappling with financial challenges, including a £25million loss over the past three years.

The company’s UK operations were hit hard by rising costs, inflation, and changing shopping habits, as budget-conscious customers increasingly turn to online platforms like Amazon and Temu.

Modella Capital, known for snapping up high street brands such as The Original Factory Shop and Hobbycraft, recently acquired WH Smith’s 480 high street stores and is now rebranding them under the TG Jones name.

A successful bid for Claire’s would further cement Modella’s position as a major player in British retail.

Meanwhile, Doug Putman, who famously rescued HMV in 2019, is also in the running, although it remains unclear which bidder is leading the race.

Administrators at Interpath are keeping all 278 UK and 28 Irish Claire’s stores open for now, offering a glimmer of hope to its 2,150 employees.

However, insiders suggest any buyer would likely close numerous outlets, with only around 100 stores considered viable.

Claire’s UK problems follow the collapse of its US parent company, which filed for bankruptcy earlier in August.

While the US arm has found a buyer for 950 of its stores, the future of its UK operations hangs in the balance.

For now, Claire’s remains open, but online orders have been suspended, and refunds for unshipped purchases are being processed.

Trouble on the high street

Bodycare, which begun as a market stall in Lancashire back in the 1970s and has 147 UK stores, appointed administrators from Interpath Advisory on Friday.

Exactly 32 stores closed with immediate effect, with around 450 employees made redundant.

Currently, 115 stores remain open and are trading as usual while administrators explore options for the future of the business.

However, if a buyer cannot be found, further store closures may occur.

Like many of its peers, Bodycare has felt the burn of risings cost coupled with shoppers having less money to spend at the till.

Recently, River Island and Poundland avoided going into administration by getting creditors to agree to restructuring plans, which included closing stores and cutting jobs.

River Island will close up to 33 stores in January to help write off the fashion brand’s debts.

Locations in major UK cities including Edinburgh, Leeds, Oxford, Brighton and Perth are all expected to close.

Poundland’s restructuring will see the chain close a total of 68 stores.

The restructure also includes rent cuts at up to 180 stores and the closure of its frozen food and online shopping.

Meanwhile, the Darton frozen food distribution centre will shut later this year.

This will mean online shopping and frozen food will no longer be offered by Poundland.

The Bilston national distribution centre is also set to close in early 2026.

Come September 16, shoppers will no longer be able to buy products online and its loyalty scheme, Poundland Perks, will be axed.

Customers who have signed up to the Poundland Perks app have until January 15, 2026, to use their reward vouchers.

But Poundland plans to expand its £1 product range and focus on womenswear and seasonal items if the restructure goes ahead.

Meanwhile, fashion retailer New Look has closed a dozen sites in the UK this year and also exited Ireland.

Last month, Claire’s also collapsed into administration and stopped online orders for its customers.

Plus, H&M-owned fashion chain Monki closed the last of its high street stores in August.