Hilco Capital, the investment firm known for backing high street names such as Superdry, Lakeland and HMV, is reportedly preparing a bid for the UK arm of Claire’s, the jewellery and accessories retailer that operates around 280 stores across the country.

According to Sky News, move comes as Claire’s faces mounting cost pressures and debt concerns, with a £355 million repayment due in December 2026. The company has recently appointed Interpath Advisory to explore sale and restructuring options, following a period of challenging market conditions that have impacted sales and profitability. While Claire’s UK sales declined slightly last year, pre-tax losses narrowed, indicating ongoing difficulties for the retailer.

The Sky News report notes that industry insiders have suggested that any deal could result in a significant number of store closures, with estimates indicating that up to a third of Claire’s UK shops may close in order to stabilise the business. One retail industry boss told Sky News that “as many as a third of the UK shops could be axed in a deal to salvage the rest of the chain, potentially putting hundreds of jobs at risk.”

Hilco Capital is expected to be among several bidders, with Alteri Investors and Modella Capital, the latter having recently acquired WHSmith’s high street division, also reportedly interested in the sale process. The news of a potential sale has fuelled speculation that Claire’s may consider a major geographical break-up of its business, as its US operations are separately believed to be on the brink of bankruptcy protection.

Claire’s is owned by former creditors Elliott Management and Monarch Alternative Capital following a previous financial restructuring. The company’s global operations span approximately 2,750 stores, but the current focus is on the future of its UK business. The US arm is being advised by investment bank Houlihan Lokey on the sale process.

Hilco Capital has a track record of aiding struggling retailers in the UK, previously helping to turn around Cath Kidston before selling it to Next in 2023. The investment firm was also one of the recent bidders for Poundland.

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