Two major high street retailers, Claire's and The Original Factory Shop (TOFS), have been placed into administration, threatening the jobs of approximately 2,500 employees across the UK and Ireland.
Last-Ditch Rescue Attempt Fails
Their owner, investment firm Modella Capital, confirmed the move on Monday 5 January 2026, stating that final efforts to save the businesses had fallen through. A spokesman for Modella described the decision to initiate insolvency proceedings as "tough," but inevitable given the circumstances.
"We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again," the spokesman said. "In these circumstances, administration is the only option."
Scale of the Job Losses
The collapse puts a significant number of roles in immediate jeopardy. For the accessories chain Claire's, 1,355 staff across 154 shops in the UK and Ireland are now at risk of redundancy. Meanwhile, the discount retailer The Original Factory Shop places 1,220 employees at its 140 stores in a similarly precarious position.
Modella Capital, which bought the retailers last year following previous restructuring efforts, pointed to historical issues as a core problem. The company stated that "the legacy effects of trading prior to our ownership left them highly vulnerable" to current market pressures.
A Challenging Climate for Retail
The firm blamed a perfect storm of economic challenges for the failure, warning that other beloved high street names are suffering. Modella cited extremely weak consumer confidence, continued cost inflation, and what it termed "highly adverse government fiscal policies" as key factors.
"The climate on the high street remains extremely challenging, and TOFS and Claire's are not alone in experiencing difficulties," the firm's statement continued. "It's a simple fact that if retailers can't make money, they risk having to close, and jobs across the country are lost."
This double administration marks another severe blow to the British retail sector, highlighting the intense pressures facing physical stores amid shifting consumer habits and a difficult economic landscape.
