Modella Capital is emerging as the frontrunner to buy Claire’s UK and Ireland business. Claire’s appointed administrators for its UK and Ireland operations last month after filing for bankruptcy in the United States. The administration is being handled by Interpath Advisory, which has been informing potential buyers as it seeks to secure the chain’s future on British high streets.

Modella is understood to have drawn up a deal outline directly with Ames Watson, the US parent company of Claire’s. There is no guarantee that a deal will be completed, and any agreement would still require approval from Interpath.

Claire’s 306 shops in the UK and Ireland remain open while advisers assess options. Modella bought WH Smith’s high street chain earlier this year and is rebranding those shops to TGJones. WH Smith’s travel division, which operates outlets in airports, train stations and hospitals, is not part of the deal and will stay unchanged. Modella has previously invested in Hobbycraft, Paperchase and Tie Rack. Interpath and Modella declined to comment.