Two prominent high street chains are facing the possibility of administration as their owner’s final efforts to salvage them have fallen short. Claire’s and The Original Factory Shop are set to enter administration, putting approximately 2,500 employees in the UK at risk of losing their jobs, as confirmed by Modella Capital. These fashion accessories and discount department store chains will undergo insolvency proceedings in the UK and Ireland.
Modella cited challenging trading conditions and a significant decline in pre-Christmas foot traffic as the primary reasons for resorting to administration for both retailers. Despite undergoing restructuring following the acquisition by Modella last year, the dire circumstances left the company with no choice but to take this step.
Claire’s, with 1,355 employees spread across 154 stores in the UK and Ireland, filed for bankruptcy in the US earlier in August, revealing debts amounting to $690m (£508m). The chain had a total of 278 stores in the UK and 28 in Ireland at the time, with losses reaching £25m over the past three years in the UK.
Last year, Modella purchased 156 of Claire’s UK stores from administrators Interpath, safeguarding around 1,000 jobs. However, the remaining 145 stores, employing approximately 1,000 individuals, were not part of the deal and subsequently closed down.
The Original Factory Shop (TOFS), which recorded a pre-tax loss of £5.6m for the year ending March 31, 2024, was acquired by Modella in February 2025. Previously under the ownership of private equity firm Duke Street since 2007, TOFS currently operates 140 stores and employs 1,220 workers, who now face an uncertain future.
Court records revealed that a notice of intention to appoint an administrator for both chains was submitted on Monday afternoon. A spokesperson for Modella expressed regret over the situation, stating that despite exhaustive efforts to rescue the businesses, the harsh reality is that neither can feasibly return to profitable operations. The company attributed the challenging high street environment to weak consumer confidence, unfavorable government policies, and ongoing cost inflation.
In summary, the high street chains Claire’s and The Original Factory Shop are grappling with financial turmoil, highlighting the broader struggles faced by retailers amidst a tough economic landscape.