Claire’s in the UK might be sold for £1: who wants to buy the chain.

According to The Sun: The large retailer is negotiating a deal that could save the accessories chain Claire’s, which is currently facing serious difficulties.

The owner of Lakeland, Hilco Capital, is interested in acquiring Claire’s, which recently announced it was entering administration and halted all online orders.

According to Retail Week, the deal could be made for a nominal sum of £1 due to convoluted financial ties with the US parent company, which has filed for bankruptcy.

A source noted that the situation looks 'a bit convoluted'.

“They have little money in the bank, they are barely profitable, have numerous unfulfilled leases, and while they have enough stock, in the case of a fire sale, it won't be worth much. It will be pennies on the dollar,” the source said.

Two other retailers have already submitted their bids to acquire the chain.

These are Modella Capital, which recently acquired WHSmith stores, and Doug Putman, known for his efforts to save HMV.

Previously, Hilco had intended to acquire the UK and Ireland business of Claire’s in July but backed out of the auction at the last minute before the parent company went bankrupt.

The US part of Claire’s filed for bankruptcy on August 7, and a buyer has already been found for 950 of its stores.

Meanwhile, Claire’s in the UK and Ireland entered administration on August 13, and Interpath was appointed as administrators on the same day.

Currently, 306 stores of the retailer remain open, and there are no plans for job cuts at this time.

However, any potential buyer will likely need to conduct significant restructuring of the business, as only about 100 stores are considered profitable.

Over the past three years, Claire’s has suffered losses amounting to £25 million.

The company's operations in the UK have been severely impacted by rising costs, inflation, and changing consumer habits, as budget-conscious shoppers increasingly choose online platforms like Amazon and Temu.

Pain on the High Streets

Rising costs, declining footfall, and reduced consumer spending are hitting retailers hard.

The Bodycare company, which started in Lancashire in the 1970s with a market kiosk and now has 147 stores in the UK, announced last week that it would go into administration with Interpath Advisory.

It has already closed 32 stores, laying off about 450 employees.

River Island and Poundland avoided administration by agreeing on restructuring plans with creditors, which included closing stores and cutting jobs.

River Island plans to close up to 33 stores in January to help pay off the brand's debts.

Meanwhile, Poundland's restructuring involves closing 68 stores.

Furthermore, the clothing retailer New Look closed up to ten stores in the UK this year and also exited Ireland.

Retail Pain in 2025

The British Retail Consortium previously projected that this year's increase in national insurance contributions for employers would cost the sector £2.3 billion.

The Centre for Retail Research (CRR) also warned that around 17,350 retail outlets are expected to close in total this year.

This comes after a difficult 2024, when 13,000 stores permanently shut their doors, which is already 28% more than the previous year.

Professor Joshua Bamfield, director of the CRR, said: “The results of 2024 show that while the number of store closures was not as dramatic as in 2020 or 2022, the trend is still concerning, and the situation might worsen in 2025.”

Professor Bamfield also expressed concerns about the prospects for 2025, predicting a loss of up to 202,000 jobs in the sector.

“Rising costs of maintaining stores and increased costs for households are likely to lead to job losses in the retail sector exceeding the peak pandemic numbers of 2020.”