Claire’s and The Original Factory Shop collapse into administration with 2,500 jobs at risk

High street chains Claire’s and The Original Factory Shop (TOFS) are being put into administration, putting about 2,500 UK staff at risk of redundancy.

The two retailers had already undergone restructuring and were bought by investment firm Modella Capital last year.

Modella said it had made the “tough decision” to kickstart insolvency proceedings for the businesses after “last-ditch” measures had fallen through.

The 1,355 employees in the UK and Ireland at 154 Claire’s shops will be put at risk, and 1,220 staff across 140 TOFS stores.

Court records show that a notice of intention to appoint an administrator was filed in relation to both chains on Monday afternoon.

“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 spokesperson for the company said.

“In these circumstances, administration is the only option.

“In both cases, the legacy effects of trading prior to our ownership left them highly vulnerable.”

Modella said tough retail conditions, including those from government policies, were causing British businesses to “suffer”.

“The climate on the high street remains extremely challenging, and TOFS and Claire’s are not alone in experiencing difficulties,” the firm said.

“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.

“It’s a simple fact that if retailers can’t make money, they risk having to close, and jobs across the country are lost.”

Modella bought more than 150 Claire’s shops last year, but 145 were not included in the deal, leading to their closure.

The fashion accessories chain had appointed administrators for its UK and Ireland business after filing for bankruptcy in the US.

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

Modella has become a significant force in the British retail industry, having bought WH Smith’s high street chain last year and taking over arts and crafts retailer Hobbycraft in 2024.