Claire's UK Insolvencies Generated Over £7 Million in Fees
Advisers charged up to £1,515 per hour while two rounds of insolvency hit creditors and eliminated 2,000 jobs.
Updated on Sept. 22, 2026 in Retail
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Claire's UK operations underwent two separate administrations beginning 13 August 2025 and 26 January 2026, generating more than £7 million in combined advisory fees. The insolvencies, which resulted in over 2,000 redundancies, left unsecured creditors facing millions in potential losses.
Why it matters
The high cost of these restructurings, driven by complex multi-jurisdictional demands, highlights the financial stakes for creditors when retail chains collapse. Owners should note how advisory fees and structural complexity can erode the remaining value available to settle unsecured claims.
Advisory firms incurred roughly £2.2 million in unpaid fees during the second administration, while Interpath now seeks an additional £3.2 million for the first. These costs compound the impact of the closures, which shuttered 154 standalone stores.
The players
Interpath
An advisory firm specializing in restructuring and insolvency services that oversaw the first administration.
Kroll
A global consulting firm that provides risk management and advisory services and oversaw the second administration.
Modella Capital
An investment firm that acquired 156 Claire's stores in September 2025.
The details
The first administration, overseen by Interpath, followed a US Chapter 11 filing and eventually led to the sale of 156 stores to Modella Capital in September 2025. Kroll managed the subsequent administration of CAUKI Limited, citing the unusual nature of the second insolvency as a factor in its high fees. The restructuring process prioritized these advisory costs, leaving original unsecured creditors with significant shortfalls.
Timeline
13 August 2025: Claire's first administration officially began.
September 2025: Modella Capital acquired 156 Claire's stores.
26 January 2026: CAUKI Limited entered administration.
April 2026: The final 154 standalone UK and Ireland stores closed.
Market Landscape
This series of insolvencies follows the pattern established by the 2018 Claire's US Chapter 11 filing, demonstrating how international brand restructurings can face repeated collapse. The case underscores a trend where complex cross-border structures lead to elevated professional fee burdens.
Operators should monitor the impact of high professional fee structures on their own supply chains and creditor status during a partner's insolvency. Prioritize reviewing the financial health of retail vendors to avoid being caught in multi-jurisdictional restructuring disputes.
The takeaway
Large-scale insolvencies often prioritize advisory fees over creditor recovery, placing unsecured partners at a significant disadvantage. Always evaluate the structural complexity of your retail partners to gauge potential risk during a financial downturn.
Further reading
For more on the challenges facing multinational chains, visit our Retail section.
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Should administrators' fees be capped when corporate insolvencies leave creditors with nothing?
