Two well-known retail chains are facing the possibility of going into administration following unsuccessful efforts by their owner to rescue them. 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 decrease in pre-Christmas foot traffic as the primary reasons for the impending administration of both retailers. Claire’s, with 1,355 employees spread across 154 stores in the UK and Ireland, had previously filed for bankruptcy in the US due to substantial debt amounting to $690 million (£508 million). The chain had also recorded losses totaling £25 million in the UK over the past three years.
Modella had acquired 156 Claire’s stores in the UK in a bid to save the business, safeguarding around 1,000 jobs; however, 145 stores, employing approximately 1,000 workers, were left out of the deal and subsequently closed. Meanwhile, The Original Factory Shop, which had been under the ownership of Duke Street since 2007, reported a pre-tax loss of £5.6 million for the year ending March 31, 2024, before being purchased by Modella in February 2025. The discount chain currently operates 140 stores and employs 1,220 individuals, all of whom are now facing an uncertain future.
Court records indicate that a notice of intent to appoint an administrator for both chains was submitted on Monday. A spokesperson for Modella expressed regret at the situation, stating that despite their best efforts, the businesses could not be rescued and that administration was the only viable option. The company highlighted the tough retail environment, attributing the challenges to weak consumer confidence, unfavorable government fiscal policies, and ongoing cost inflation.
