Claire’s, the beloved fashion accessories chain synonymous with ear piercings and vibrant jewelry displays in shopping centers across the UK and Ireland, has narrowly avoided total collapse—at least for now. After weeks of uncertainty following its entry into administration on August 13, 2025, the chain’s future has been partially secured thanks to a rescue deal spearheaded by Modella Capital, an investment firm with a growing track record in retail turnarounds.
According to statements from Interpath, the joint administrators overseeing Claire’s UK operations, Modella Capital has agreed to purchase 156 of Claire’s stores in the UK and Ireland. This transaction, confirmed at the end of September, will preserve around 1,000 jobs and ensure that the Claire’s brand continues to grace British high streets for the foreseeable future. Natasha Harbinson, Interpath’s managing director, said, “We are pleased to confirm a sale of the majority of Claire’s UK business and assets which will ensure this popular brand will continue to trade on high streets up and down the UK.”
But while this deal brings relief to many employees and loyal customers, it’s hardly the end of the story. Roughly 145 Claire’s stores—nearly half of the chain’s UK and Ireland footprint—were not included in Modella’s acquisition. These stores, employing another 1,000 people, remain in limbo. For now, they will remain open and continue trading while Interpath explores options for their future. Will Wright, Interpath’s UK chief executive and joint administrator, explained, “Our intention is to continue to trade the remaining portfolio of stores for as long as we can, while we explore the options available.”
The uncertainty for these workers and their communities is palpable. Modella Capital’s managing director, Joe Price, acknowledged the gravity of the situation, stating, “The issues that Claire’s is facing are significant, and we will need to work collaboratively with all interested parties if our proposed rescue plan is to succeed.” He added, “As a firm, we strongly believe that this much-loved brand deserves the chance to remain on the high street in the UK and Ireland.”
Still, Modella has been clear-eyed about the challenges ahead. In a statement, the firm warned that “it is inevitable that this acquisition will result in some store closures and job losses” as it negotiates with landlords and assesses which outlets can viably remain open. The fate of the 145 stores left out of the deal is being closely watched, with the administrators working to find possible buyers or alternative solutions.
Claire’s UK collapse came just days after its US parent company, Claire’s Holdings LLC, filed for bankruptcy—the second such filing in seven years. In its Delaware bankruptcy petition, the company listed assets and liabilities in the $1 billion to $10 billion range, underscoring the scale of its financial woes. The group, founded in 1961, operates more than 2,750 stores in 17 countries, but has been battered by a “perfect storm” of retail headwinds. Executives cited declining demand from younger shoppers—particularly Generation Alpha, who increasingly favor online shopping tied to social media over traditional brick-and-mortar experiences. The rapid rise of fast-fashion and ultra-low-cost online competitors like Shein, Temu, Amazon, and TikTok Shop has only intensified the pressure.
Claire’s, once a rite of passage for tweens and teens seeking their first ear piercings or hunting for the latest hair accessories, has struggled to keep pace with these digital-first rivals. The brand’s signature offerings—earrings, hair bands, and a rotating cast of trendy collectibles—remain popular, but the way young people shop has changed dramatically. As reported by The Guardian, the UK arm’s sales have fallen sharply in recent years, with online giants and social media platforms siphoning away its core demographic.
The rescue deal is also notable for Modella Capital’s growing footprint in the UK retail sector. Earlier this year, Modella acquired over 480 WH Smith high street stores, including 5,000 staff, after WH Smith decided to focus on travel locations like airports and railway stations. Those stores are now being rebranded as TG Jones, a fictional “family” name designed to give the chain a fresh identity. Modella’s previous retail investments include backing Hobbycraft and, less successfully, Ted Baker’s UK licensee.
Modella’s acquisition of Claire’s UK business involved a parallel agreement with Ames Watson, the US-based brand specialist that now owns Claire’s intellectual property. Just days before the UK deal, Claire’s announced it had sold its North American business to Ames Watson for $104 million (£77 million) and would close 290 US stores—a stark reminder of the global scale of the company’s retrenchment.
Meanwhile, the administrators have managed to secure a sale of Claire’s business in Switzerland, and discussions are ongoing regarding the fate of Claire’s entities in France, Italy, and Poland. The European picture remains fluid, with many stakeholders hoping for similar rescue deals to safeguard jobs and preserve the brand’s presence on the continent.
For now, the 156 stores acquired by Modella will continue to operate as Claire’s, offering the familiar mix of jewelry, accessories, and piercing services that made the chain a fixture for generations of young shoppers. But the road ahead is uncertain. As Modella negotiates with landlords and assesses the viability of each location, some closures and redundancies appear unavoidable. The administrators at Interpath are working to find solutions for the remaining 145 stores, but the clock is ticking for the employees whose futures hang in the balance.
Despite the uncertainty, there’s a sense—shared by Modella, the administrators, and many in the retail industry—that Claire’s still has a place on the UK high street. “This popular brand will continue to trade on high streets up and down the UK,” Harbinson said, echoing the hopes of many who grew up with the store as a retail rite of passage. Whether that optimism can withstand the ongoing pressures of a changing retail landscape remains to be seen. But for now, at least, Claire’s has been granted a reprieve—and thousands of workers and customers alike are hoping it’s enough to weather the storm.
