Claire’s and The Original Factory Shop are being put into administration, seeing around 2,500 UK staff at risk of redundancy, the owner of the two high street chains has said.
Modella Capital shared it has been a "very tough decision" and have "worked intensively" to save both of the popular shops.
It added that "last-ditch attempts" were made to rescue Claire’s and The Original Factory Shop but "neither has a realistic possibility of trading profitably again".
In a statement, a spokesperson for Modella Capital confirmed: "Very sadly, we have had to initiate insolvency proceedings for The Original Factory Shop (TOFS) and Claire’s Accessories UK & Ireland.
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“This has been a very tough decision. We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again.
“In these circumstances, administration is the only option. In both cases, the legacy effects of trading prior to our ownership left them highly vulnerable.
“The climate on the high street remains extremely challenging and TOFS and Claire’s are not alone in experiencing difficulties.
“This is borne out by recent Sensormatic statistics and other data sources suggesting an alarming drop-off in pre-Christmas footfall.
“A combination of very weak consumer confidence, highly adverse government fiscal policies and continued cost inflation is causing many established and much-loved businesses to suffer badly.
“It’s a simple fact that if retailers can’t make money, they risk having to close – and jobs across the country are lost.”
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The investment group Modella Capital has 154 Claire’s stores after buying around half the UK chain from administrators in September 2025. The administration process could see about 1,350 jobs affected.
Meanwhile, homewares discount chain The Original Factory Shop was also bought by Modella less than a year ago from the private equity group Duke Street Capital.
It has filed a notice with the high court to appoint administrators with about 1,200 jobs at risk from 140 shops.
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