Claire’s and The Original Factory Shop have been placed into administration, putting up to 2,500 jobs at risk.
Owner Modella Capital blamed ‘alarming’ weak Christmas trading and government policies for the decision to prepare the high street retailers for entering insolvency proceedings across UK and Ireland.
Modella bought the UK and Ireland business of fashion accessories chain Claire’s out of a previous administration in late September, saving around 1,000 jobs, as 145 stores closed. Its parent company, Claire’s Holdings LLC, has earlier commenced Chapter 11 proceedings in the US.
Claire’s now has 154 stores and employs 1,355 staff. The firm recorded a pre-tax loss of £4m on falling sales of £137m for the year to 3rd February 2024.
Modella acquired discount department store TOFS, which has 140 stores and 1,220 staff, earlier in 2025. Its head office and distribution centre was moved from Burnley to Bolton in a restructure six months ago.
The company made a £5.6m pre-tax loss in the year to 31st March 2024, with sales slipping slightly to £117.5m.
Modella, which also owns WH Smith and Crafter’s Companion – the latter having been saved by former Dragons’ Den star Sara Davies last Christmas – said the administration will give Claire’s and TOFS breathing space from creditors as they seek a new buyer.
“This has been a very tough decision,” said Modella. “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.
“A combination of very weak consumer confidence, highly adverse government fiscal policies and continued cost inflation is causing many established and much-loved businesses to suffer badly.”