Accessories Giant Claire's Enters Administration Again in Major Birmingham Blow
In a devastating development for the UK retail sector, Birmingham-based accessories chain Claire's has collapsed into administration for the second time in just six months. This move places more than 1,000 retail jobs in immediate jeopardy across the country, casting a shadow over the future of the iconic high street brand.
Formal Administration Appointment and Immediate Impact
Insolvency practitioners from Kroll were formally appointed on Monday, January 26, 2026, to oversee proceedings for Claire's UK and Irish operations. The joint administrators—Philip Dakin, Benjamin Wiles, and Janet Burt of Kroll Advisory Ltd—have taken control of CAUKI Ltd, the company operating Claire's stores. While the business continues to trade temporarily, its long-term survival hangs in the balance as administrators explore all available options.
Scale of the Crisis: Jobs and Stores Under Threat
The collapse threatens over 1,000 retail positions and puts the remaining 156 Claire's stores across the UK and Ireland at serious risk of closure. This represents a dramatic reversal from September 2025, when Modella Capital rescued 156 stores through a restructuring deal while closing 145 others. The current administration marks a significant escalation in the company's financial troubles.
Owner's Statement and Broader Collapse
The administration follows just three weeks after owner Modella Capital filed notices of intention to appoint administrators for both Claire's and The Original Factory Shop (TOFS). Modella has stated unequivocally that "administration is the only option" after exhaustive last-ditch rescue attempts failed to secure the businesses' futures.
Multiple Factors Behind the Failure
Industry insiders describe the collapse as resulting from a "perfect storm" of challenges facing traditional retailers:
- Persistent high-street rent demands from landlords
- Significant cost inflation affecting operations
- Government fiscal policies increasing the tax burden on retail businesses
Inherited Vulnerabilities and Competitive Pressures
Modella Capital has revealed that both Claire's and TOFS were "highly vulnerable" due to legacy trading issues inherited before their acquisition. Despite intensive efforts to revitalise the brands, owners concluded neither has a "realistic possibility of trading profitably again." Compounding these problems, industry experts point to shifting teen shopping habits, with customers increasingly moving toward digital platforms like TikTok Shop and ultra-fast fashion competitors, significantly undermining Claire's traditional high-street model.
Current Status and Future Prospects
For the immediate future, administrators intend to keep remaining stores open while they formulate proposals over the coming weeks. Kroll will actively seek potential buyers for all or part of the business in an effort to prevent total liquidation and preserve whatever employment opportunities remain possible. The coming month will prove crucial in determining whether any elements of this Birmingham-based retail institution can survive.
