Claire's and The Original Factory Shop fall into administration

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high street chain store Claire’s and The Original Factory Shop (TOFS) are now in operation administrativeabout 2,500 U.K. Employees are at risk of layoffs.

The two retailers have since restructured and were acquired by investment firm Modella Capital last year.

Modella said it had made the “difficult decision” to initiate bankruptcy proceedings after “last-ditch” measures failed.

1,355 staff at 154 Claire’s stores in the UK and Ireland and 1,220 staff at 140 TOFS stores are at risk.

Court records show a notice of intent to appoint administrators was filed with both chains on Monday afternoon.

A spokesman for the company said: “We have made every effort to save both businesses and made a last-ditch effort, but neither company has a realistic possibility of becoming profitable again.”

Owner Modella Capital says TOFS and Claire's are not the only companies experiencing difficulties — Owner Modella Capital says TOFS and Claire’s are not the only companies experiencing difficulties (PA)

“In this case, administration is the only option.

“In both cases, the legacy of transactions that preceded our ownership makes them very vulnerable.”

Modera said the tough retail environment, including the impact of government policies, was causing British businesses to “suffer losses”.

“The high street climate remains extremely challenging and TOFS and Claire’s are not the only companies experiencing difficulties,” the company said.

“Consumer confidence is very weak, government fiscal policy is very unfavorable, and costs continue to rise, resulting in many established and well-loved businesses suffering serious losses.

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“It’s a simple fact that if retailers can’t make money, they risk being forced to close and jobs will disappear across the country.”

Modella acquired more than 150 Claire’s stores last year, but 145 were not included in the deal, resulting in the closures.

The fashion accessories chain has appointed administrators for its UK and Ireland operations after it filed for insolvency in the US.

TOFS, a discount department store chain, was sold to the investment firm in February.

Modella has become a major force in UK retail, acquiring the high street chain WH Smith last year and arts and crafts retailer Hobbycraft in 2024.