Two well known high street retailers, Claire’s and The Original Factory Shop, have entered administration in the UK and Ireland, putting around 2,500 jobs at risk.
Claire’s, a popular brand among young shoppers for its colorful fashion accessories, has been struggling for some time. The retailer had already been searching for a buyer after its United States based parent company filed for bankruptcy last year.
Modella Capital said extremely weak Christmas sales played a major role in pushing both chains into a critical position. The firm described recent trading conditions as very tough, adding that the high street environment remains difficult for traditional retailers.
Currently, Claire’s operates 154 stores and employs about 1,355 people. The Original Factory Shop runs 140 stores with roughly 1,220 staff members.
This is not the first time Claire’s has faced collapse. Modella bought the brand in September, just six weeks after it entered administration previously. That deal resulted in around 1,000 job losses and the closure of 145 stores. Modella has owned The Original Factory Shop since early last year.
In a statement, Modella said the decision to place both retailers into administration was not taken lightly. The firm explained that despite repeated efforts to save the businesses, neither could realistically return to long term profitability under current conditions.
The investment company also pointed to wider challenges affecting the retail sector. These include falling foot traffic on high streets, rising operating costs, and growing pressure from online shopping. Modella added that government policies and ongoing cost increases have made survival even harder for physical stores.
The company joined other businesses in criticizing recent government measures introduced by Chancellor Rachel Reeves. Higher taxes, increases in the minimum wage, and higher employer National Insurance contributions have all added to financial pressure, especially as inflation continues to strain household spending.
