Claire’s and The Original Factory Shop are facing administration, putting 2,550 jobs at risk. Both chains are owned by Modella Capital, a private equity firm, which said trading on UK high streets is “extremely challenging” and pre-Christmas footfall has dropped alarmingly.
Modella has started insolvency proceedings for both retailers, calling administration the “only option”. The Claire’s chain has 154 stores and employs about 1,350 staff, while The Original Factory Shop has 140 stores and about 1,200 employees. Kroll is lined up to handle the Claire’s administration, and Interpath for The Original Factory Shop.
Modella bought Claire’s from administrators in September last year and acquired The Original Factory Shop from Duke Street Capital less than a year ago. The Original Factory Shop filed a notice with the high court to appoint administrators, giving it 10 days’ protection from creditors while negotiations continue.
Modella said it had worked intensively to save both businesses but neither has a realistic possibility of trading profitably again, citing weak consumer confidence, adverse government fiscal policies, and continued cost inflation. The Original Factory Shop made a £5.6m pre-tax loss in the year to 31 March 2024, with sales down 1% to £117.5m.
The news follows LK Bennett’s recent administration filing and comes as retailers face higher costs and a tough consumer environment. A warm autumn has also hit fashion sales, which fell 1.4% in the four weeks to 7 December.
