The investor which swooped on WH Smith’s high street business earlier this year is in pole position to snap up the British operations of Claire’s, the accessories retailer which collapsed last month.
Sky News has learnt that Modella Capital has agreed the outline of a deal with Claire’s new US-based owner, private equity firm Ames Watson, which paves the way for it to buy the UK chain.
Modella is said to have edged ahead of rival bidders in recent days including Touker Suleyman, the Dragons’ Den judge, and HMV-owner Doug Putman in recent days.
Ames Watson is understood to have been seeking minimum financial guarantees for Claire’s UK business as part of its discussions with potential buyers.
Sources close to the process said on Wednesday that Modella had yet to agree a separate deal with Interpath Advisory, the administrators of Claire’s business in the UK.
While there was no guarantee that it would do so, its talks with Ames Watson makes the prospects of an agreement likely, the sources added.
Claire’s trades from 278 stores in the UK and 28 in Ireland, employing about 2,100 people across the combined estate.
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Interpath said last month it would keep all shops open while it assessed options for the business.
Modella has emerged from nowhere to become the most prolific investor in bricks-and-mortar retailing in Britain in recent months.
As well as WH Smith, which it is rebranding under the name TG Jones, Modella now owns The Original Factory Shop and Hobbycraft, both of which it has put through restructuring processes since it acquired them.
Claire’s, which has been a fixture in British shopping centres and town centres for decades, is one of the biggest high street chains to fall into insolvency this year.
It has a particular following among teenage shoppers.
The company had been running a sale process prior to its appointment as administrators, but did not manage to secure a solvent deal.
The retail industry has been left reeling by the employers’ national insurance hike announced by Rachel Reeves, the chancellor, last autumn.
Both Poundland and River Island recently survived creditor votes paving the way for them to slash rents and close dozens of stores.
The collapse of Claire’s UK operations came a week after its US parent company filed for Chapter 11 bankruptcy protection.
The company had been owned by former creditors Elliott Management and Monarch Alternative Capital following a previous financial restructuring.
Will Wright, UK chief executive at Interpath, said last month: “Claire’s has long been a popular brand across the UK, known not only for its trend-led accessories but also as the go-to destination for ear piercing.
“Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company.
“This includes exploring the possibility of a sale which would secure a future for this well-loved brand.”
A Modella spokesperson said it did not comment on market rumours, while Mr Suleyman declined to comment.
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Interpath has been contacted for comment.
