Rescue deal saves Claire's but 1,000 jobs remain at risk

The future of fashion accessory chain Claire's has been secured in the UK with the sale of more than half of its stores, but doubts remain over the fate of its remaining shops and jobs.

Modella Capital, which bought the WH Smith High Street stores, has agreed to purchase "substantially most" of Claire's UK, the joint administrators confirmed.

The new deal will save approximately 1,000 jobs and 156 stores, but 145 other stores are not included in the deal.

Interpath, which led the sales process, said there were about 1,000 employees across those stores that were not transferring to Modella.

Claire's collapsed into administration in the UK and Ireland on 13 August, putting 2,150 jobs at risk.

The chain had been particularly popular for its ear piercing services and was a common stop in the early 2000s for tweens and teens during weekend shopping trips across the world.

Its stores are known for their colourful selection of hair bands, earrings, jewellery, and occasionally for toys such as slime and fluffy collectables.

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."

The UK stores not currently included in the deal will remain open and will continue to trade while the administrators continue to assess their options.

Will Wright, Interpath's UK chief executive and joint administrator, added: "Our intention is to continue to trade the remaining portfolio of stores for as long as we can, while we explore the options available."

Joe Price, managing director at Modella Capital, said: "We strongly believe this much-loved brand deserves the chance to remain on the High Street in the UK and Ireland."

Mr Price said Claire's was facing "significant" issues and Modella Capital would need to "work collaboratively with all interested parties" if the rescue plan was to succeed.

Ms Harbinson said that the administrators had also secured a sale of the Claire's business in Switzerland, while discussions will continue regarding the fate of other Claire's entities in France, Italy and Poland.

On 20 August, Claire's announced it had sold its North American business to private equity firm Ames Watson for $104m (£77m) and revealed it would close 290 stores in the US.

In March, Modella Capital bought more than 480 WH Smith stores located in retail parks, shopping centres and on High Streets, including 5,000 staff.

The sale came after WH Smith decided it would focus on its stores at airports, railway stations and hospitals.

Since that deal, Modella Capital has been rebranding the High Street stores as TGJones.