Two major high street retailers, Claire's and The Original Factory Shop (TOFS), have been placed into administration, threatening the jobs of around 2,500 staff across the UK and Ireland.
Last-Ditch Rescue Attempts Fail
Their owner, the investment firm Modella Capital, confirmed the move after what it described as failed "last-ditch" efforts to save the businesses. A spokesman stated that neither chain had a "realistic possibility of trading profitably again", leaving administration as the only remaining option.
Modella, which bought both retailers last year, filed a notice of intention to appoint administrators for the chains on Monday afternoon. The firm pointed to "the legacy effects of trading prior to our ownership" as a key factor that left the businesses highly vulnerable.
Scale of the Job Losses and Store Impact
The insolvency proceedings put a significant number of jobs on the line. Specifically, 1,355 employees at 154 Claire's shops in the UK and Ireland are at risk of redundancy. Meanwhile, 1,220 staff across 140 The Original Factory Shop stores face the same uncertainty.
This collapse follows a period of restructuring. Modella bought more than 150 Claire's shops last year, but a separate 145 stores were excluded from that deal and have already closed. Claire's had previously appointed administrators for its UK and Ireland arm after its US parent company filed for bankruptcy.
Broader High Street Challenges Cited
Modella blamed a harsh trading environment for the failures. The firm said the "climate on the high street remains extremely challenging", citing a toxic mix of weak consumer confidence, adverse government fiscal policies, and persistent cost inflation.
"It’s a simple fact that if retailers can’t make money, they risk having to close, and jobs across the country are lost," the company's statement concluded. Modella has become a notable player in UK retail, having also acquired WH Smith's high street chain last year and taking over Hobbycraft in 2024.
