Birmingham Retail Giant Enters Administration for Second Time
Claire's, the popular accessories retailer headquartered in Birmingham, has collapsed into administration for the second time in just six months, casting significant uncertainty over the future of its UK operations and workforce.
Administrators Appointed as Jobs Hang in Balance
Insolvency practitioners from Kroll Advisory Ltd were formally appointed as joint administrators for CAUKI Ltd, the company behind Claire's UK operations, on Monday, January 26, 2026. The appointment places more than 1,000 jobs across the country at immediate risk, with the company's Birmingham headquarters particularly affected.
Philip Dakin, Benjamin Wiles, and Janet Burt of Kroll have taken control of the business, issuing a statement confirming that "the company is continuing to trade during this period." This development follows a notice of intention to appoint administrators filed just three weeks earlier by Modella Capital, the current owner of both Claire's and The Original Factory Shop.
Repeated Financial Struggles for Iconic Retailer
This marks the second administration process for Claire's in under a year, coming just months after an emergency rescue deal was struck in 2025. At that time, 156 Claire's stores were sold to Modella Capital in a transaction designed to preserve approximately 1,000 positions nationwide.
However, that arrangement left 145 branches outside the deal, resulting in numerous store closures across Britain. The retailer, which once operated around 281 locations throughout the UK, has seen its physical footprint diminish significantly in recent years.
Multiple Factors Behind the Collapse
Sources close to the situation have identified several contributing factors to this latest financial crisis:
- Government policy changes affecting retail operations
- Demands from landlords seeking to reclaim Claire's shop premises
- Ongoing challenges in the competitive retail environment
These combined pressures have rendered the current business model unviable, according to industry insiders familiar with the company's struggles.
Previous Administration Process and Ongoing Challenges
During the previous administration in autumn 2025, Will Wright, Interpath UK's CEO and joint administrator at that time, expressed gratitude to stakeholders while outlining the approach: "We'd like to express our sincere thanks to the thousands of Claire's dedicated employees, as well as suppliers and other key stakeholders, who have supported us throughout the administration process. Our intention is to continue to trade the remaining portfolio of stores for as long as we can, while we explore the options available."
The current administration represents another chapter in the turbulent recent history of this once-dominant retail presence, with the Birmingham-based company facing an uncertain future as administrators assess potential pathways forward.
