Claire’s UK and Ireland operations have entered administration, prompting the permanent closure of 145 stores that were excluded from a rescue deal. The move follows the collapse of its U.S. parent and a partial acquisition of its retail estate by private equity firm Modella Capital.
Drivers of the collapse: from debt burdens to declining relevance
Claire’s UK had long struggled with debt and shifting consumer habits. In the year to February 2024 it made a £4 million loss before tax on £137 million revenue—an indication that the business model was under pressure.
The group’s U.S. parent filed for Chapter 11 bankruptcy earlier in August 2025 after citing steep competition and structural decline in mall footfall. UK operations, while legally distinct, were vulnerable to contagion from global group weaknesses.
Retail analysts point to Claire’s weakening connection with its core demographic. Its traditional appeal to tweens and teens has eroded as younger shoppers shift toward online fast accessory brands or fashion platforms.
Operating costs — including rent, wages, and inflationary pressures — further squeezed margins. The UK business also faced a looming loan maturity worth £355 million due in December 2026, adding urgency to the restructuring needs.
The Modella rescue and the excluded 145 stores
In late September 2025, Modella Capital struck a deal with administrators Interpath to acquire 156 of Claire’s UK and Ireland stores. That transaction preserved about 1,000 jobs in those sites.
Modella, a London-based private equity firm known for acquiring distressed retail assets, has in recent months expanded its high street footprint, previously acquiring WHSmith’s retail arm and Hobbycraft.
The 145 stores not included in the sale remain under administrator control. No buyer was found for them, and they will be shut permanently. Administrators have initiated “final clearance” sales, offering 20 % discounts at affected stores.
Exact closure dates vary by location, and affected staff will face redundancy unless alternative arrangements or transfers become possible.
In local reports, shops such as the Claire’s in Kingston upon Thames have already been confirmed among the closures. The acquisition price was reportedly £3.6 million, of which £1.4 million was reinvested into the business to reduce liabilities.
Implications for staff, landlords and the high street
Staff in the 145 closing stores face job losses, although the total number of roles affected has not been publicly confirmed. Employees in the acquired 156 stores transferred to Modella under the rescue deal.
Unsecured creditors—including suppliers and landlords—are expected to receive only partial recovery. At the time of collapse, Claire’s UK reportedly owed at least £12 million to unsecured creditors.
In contrast, preferential creditors such as HMRC are likely to be repaid in full according to administration rules.
For landlords, the closures add pressure to already weak high street occupancy. Loss of rent income and potential difficulty in re-letting premises pose further challenges in many town centre markets.
On the high street more broadly, Claire’s collapse underscores the vulnerability of mid-tier chains facing competition from e-commerce, social commerce, and changing consumer tastes. The UK retail sector is already seeing waves of store closures in 2025, and this case may deepen scrutiny of leases, business models, and adaptability.
What this means & next steps
The decision to close 145 Claire’s stores shows the limits of partial bailouts in a troubled retail sector. While Modella’s acquisition gives hope for a leaner core business, the losses in store footprint and jobs will ripple through local economies and supply chains.
Key uncertainties remain: which locations will survive long term, how much will unsecured creditors recover, and whether Modella can revive Claire’s brand relevance.
