Two investors are competing for Claire’s: what will happen to the store chain in Ukraine.

According to The Sun: Two major retailers are trying to save Claire’s, the beloved accessory chain that entered administration last month, threatening over 2,150 jobs.

Modella Capital, the new owner of WH Smith stores, and Doug Patman, who previously rescued HMV, have made their offers to acquire this retailer's UK division, according to Sky News.

Claire’s, a popular spot for teens and an ear-piercing venue, is facing serious financial problems, including a loss of £25 million over the past three years.

Operations in the UK have suffered significant losses due to rising costs, inflation, and shifts in consumer shopping habits, as shoppers increasingly opt for online platforms like Amazon and Temu.

Modella Capital, which has already acquired 480 WH Smith stores and is currently rebranding them under the new name TG Jones, may strengthen its position in the UK retail sector if it acquires Claire’s.

Doug Patman, known for his successful work in rescuing HMV in 2019, is also vying for this space, although his position remains unclear for now.

Administrators from Interpath are keeping all 278 Claire’s stores in the UK and 28 in Ireland open, offering hope for 2,150 staff.

However, experts believe that any new owner will likely close many stores, as only about 100 of them can be considered viable.

Claire’s problems in the UK arose after the bankruptcy of its parent company in the US, which filed for bankruptcy at the beginning of August.

While the American divisions found a buyer for 950 of their stores, the future of the UK operations remains uncertain.

At this point, Claire’s stores continue to operate, but online ordering has been suspended, and returns for unshipped purchases are being processed.

High street troubles

Bodycare, which started as a market stall in Lancashire back in the 1970s, appointed administrators from Interpath Advisory last Friday.

They immediately closed 32 stores, leading to the dismissal of about 450 employees.

Currently, 115 stores are operating while administrators explore options for the future of the business.

However, without a new owner, further store closures may occur.

Like many other companies, Bodycare is suffering from rising costs and shrinking consumer budgets.

• Recently, River Island and Poundland avoided bankruptcy by striking agreements with creditors regarding restructuring plans that include store closures and job cuts.
• River Island plans to close up to 33 stores in January to repay debts.
• Poundland will close 68 stores as part of its restructuring, which also entails lowering rents on 180 properties and shutting down its frozen food line and online resources.

Among the closures, Darton frozen food distribution centre will cease operations by the end of the year, meaning Poundland will no longer offer online sales and frozen food.

Additionally, the national distribution center in Bilston also plans closures by early 2026.

From September 16, customers will no longer be able to purchase products online, and the Poundland Perks loyalty program will be canceled.

Poundland Perks program users who signed up will have until January 15, 2026, to redeem their rewards.

However, Poundland plans to expand its product range to £1 items and focus on women's clothing and seasonal products if the restructuring is implemented.

In the meantime, fashion retailer New Look closed several stores in the UK this year and also exited Ireland.

Moreover, last month, Claire’s entered administration, suspending online orders for its customers.

The Monki chain, owned by H&M, also closed its final stores in August.

Painful changes in 2025

The British Retail Consortium predicts that increased employers' national insurance contributions will cost the retail sector £2.3 billion.

The Centre for Retail Research (CRR) also warned that around 17,350 retail outlets will close this year.

This follows a tough 2024 when 13,000 stores closed, which already represents a 28% increase compared to the previous year.

Professor Joshua Bamfield, director of CRR, noted: “The results of 2024 show that, while the outcomes regarding store closures overall have not been as dire as in 2020 or 2022, the situation remains concerning, with even worse prospects for 2025.”

Professor Bamfield also highlighted the bleak outlook for 2025, suggesting that the sector could lose up to 202,000 jobs.

“Rising costs of running stores and expenses for each household are likely to lead to retail losses surpassing pandemic levels in 2020.”