Hilco moves to acquire Claire's UK operations

Hilco Capital is among bidders for the UK operations of jewellery retailer Claire's amid financial distress.

Hilco bids for struggling jewellery chain Claire's

Hilco Capital, known for its investments in high street brands like Superdry and HMV, is poised to bid for the UK operations of Claire's, the troubled jewellery chain. Sources indicate that Hilco, along with Alteri Investors and Modella Capital, is preparing offers for the brand that operates around 280 stores in Britain. Recently, Claire's engaged Interpath Advisory to explore selling its UK business while assessing options for its US operations, which may include bankruptcy. The potential sale could see a considerable number of store closures, raising concerns about job security for hundreds of employees. Claire's has been a long-standing presence on British high streets, with a total of about 2,000 stores worldwide, owned by Elliott Management and Monarch Alternative Capital following a past financial restructuring. Hilco was unavailable for comments on the developments.

The move by Hilco to eye up Claire's reflects larger trends in the retail sector where established brands struggle to navigate financial pressure. The potential for significant store closures indicates a harsh reality for the sector, as bidders weigh salvage efforts against economic viability. With the UK retail landscape increasingly competitive, Hilco's strategy may serve its interests best and test how much of Claire's market presence can be preserved.

Highlights

The future for Claire's hinges on the outcomes of these bidding negotiations.