Modella Capital Places Claire’s and The Original Factory Shop Into Administration Threatening 2,500 Jobs Across UK High Streets

Around 2,500 employees could soon face job losses after high street favorites Claire’s and The Original Factory Shop (TOFS) were placed into administration.

The announcement came on Monday evening from Modella Capital, the owner of both chains, who described the move as “very sad” and admitted it was a “very tough decision.”

A spokesperson explained that insolvency proceedings were unavoidable, saying the businesses had no realistic chance of trading profitably under current conditions despite last-ditch rescue attempts.

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Administration Cited as Only Viable Option

The company emphasized that administration was the only route left due to the long-lasting financial vulnerabilities both brands carried from prior trading periods.

“We worked intensively to save both businesses, but neither had a realistic path to profitability,” the spokesperson said.

They added that challenging market conditions on the high street contributed to the decision, with consumer confidence weakening and costs continuing to rise.

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High Street Struggles Continue

The news comes amid broader difficulties for retailers across the UK, particularly on the high street.

Data from Sensormatic and other sources indicate a significant decline in pre-Christmas footfall, reflecting a wider trend affecting many long-standing brands.

“Very weak consumer confidence, adverse fiscal policies, and rising costs are hitting beloved businesses hard,” the spokesperson noted.

“If retailers cannot make money, closures and job losses are inevitable.”

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Claire’s Plagued by Financial Troubles

Claire’s future had been uncertain for some time, following its first Chapter 11 filing in 2018 and a bankruptcy declaration in August last year.

The chain, famous for allowing generations of kids to pierce their ears, make friendship bracelets, and buy glittery accessories, filed for Chapter 11 again earlier this month.

Founded in 1961, Claire’s stores have long been a staple for middle schoolers, offering inexpensive plastic jewelry, keychains, and hats.

Many items are priced under $10, contributing to its enduring popularity among young shoppers.

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The Original Factory Shop Faces Similar Woes

TOFS, another high street favorite, has also struggled to stay afloat under the weight of rising costs and declining foot traffic.

Like Claire’s, the retailer had little hope of returning to profitability despite intensive last-minute efforts by Modella Capital.

The company stated that both businesses had been “highly vulnerable” due to legacy effects from prior trading, making administration the only viable option left to protect creditors and employees as much as possible.

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Uncertain Future for Staff and Communities

With administration underway, thousands of jobs are in limbo, and the wider implications for local communities could be severe.

Staff across the UK will now await further announcements on the future of their stores, while analysts continue to watch trends in high street retail amid mounting financial pressures.

The closures underline a difficult reality: even established, much-loved brands are not immune to the combined effects of declining consumer spending, economic policy challenges, and soaring costs.

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What Happens Next

Administrators will now manage the process for both Claire’s and TOFS, exploring potential buyers, store closures, or restructuring plans.

Employees and customers alike will have to wait for updates as the companies navigate the uncertain road ahead on Britain’s struggling high streets.

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