High Street Retailers Claire's and The Original Factory Shop Enter Administration, 2,500 Jobs at Risk

UK High Street Hit by Double Administration Blow

Two prominent UK high street retailers, Claire's and The Original Factory Shop (TOFS), have entered administration, placing approximately 2,500 jobs at risk across the United Kingdom and Ireland. Notices of intention to appoint administrators were filed on Monday, January 5, 2026, by their owner, investment firm Modella Capital.

Modella Capital stated that 'last-ditch' attempts to save the businesses were unsuccessful, leading to the 'tough decision' to initiate insolvency proceedings.

Claire's Faces Renewed Challenges

The fashion accessories retailer Claire's sees 1,355 employees across its 154 stores in the UK and Ireland at risk. This marks another period of financial difficulty for the brand, which had previously undergone restructuring. Modella Capital acquired 156 Claire's UK stores from administrators in September 2025, a deal that secured around 1,000 jobs but also resulted in the closure of 145 shops. Claire's US parent company had filed for bankruptcy in early August 2025. Insolvency firm Kroll is expected to oversee Claire's administration.

The Original Factory Shop's Struggles Continue

Discount department store chain The Original Factory Shop (TOFS) has 1,220 staff across its 140 stores facing uncertainty. Modella Capital had purchased TOFS in February 2025. The company reported a £5.6 million pre-tax loss in the year ending March 31, 2024. Interpath Advisory is anticipated to manage the administration process for TOFS.

Factors Contributing to Collapse

Modella Capital attributed the administrations to a confluence of challenging market conditions, stating that 'neither has a realistic possibility of trading profitably again'. Key factors cited include:

• An 'alarming drop-off in pre-Christmas footfall'
• 'Very weak consumer confidence'
• 'Highly adverse government fiscal policies'
• 'Continued cost inflation'
• 'Legacy effects of trading prior to our ownership left them highly vulnerable'

A spokesperson for Modella Capital emphasized the 'extremely challenging' climate on the high street, noting that these retailers are not alone in experiencing difficulties.

Future Outlook

Both Claire's and The Original Factory Shop will continue to trade while administrators seek potential buyers for the businesses. The administration process provides a temporary reprieve from creditors, allowing time to explore options for their future.