Two prominent retail chains are facing imminent administration following unsuccessful efforts by their owner to salvage the situation. Claire’s and The Original Factory Shop are set to enter insolvency proceedings in the UK and Ireland, putting approximately 2,500 employees at risk of losing their jobs, as confirmed by Modella Capital.
Modella cited challenging market conditions and a significant decline in pre-Christmas foot traffic as the primary reasons behind the decision to place both retailers into administration. Despite undergoing restructuring under Modella’s ownership last year, the current circumstances have 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, had previously filed for bankruptcy in the US in early August, revealing a substantial debt of $690m (£508m) and significant losses amounting to £25m over the past three years in the UK alone. Although Modella had acquired 156 of Claire’s UK stores from administrators Interpath, saving around 1,000 jobs, the remaining 145 stores, employing approximately 1,000 workers, were not included in the deal and subsequently shuttered.
Meanwhile, The Original Factory Shop, which registered a pre-tax loss of £5.6m in the fiscal year ending March 31, 2024, was acquired by Modella in February 2025 after being previously owned by Duke Street since 2007. With 140 stores and 1,220 employees, the future of TOFS staff is now uncertain.
Court records revealed that a notice of intention to appoint an administrator for both chains was submitted on Monday. A spokesperson for Modella expressed regret over the situation, stating that despite exhaustive efforts to revitalize the businesses, the harsh trading conditions rendered them unviable. The company emphasized the continuing tough retail landscape, attributing it to weak consumer confidence, unfavorable government policies, and ongoing cost escalations.