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Claire’s and The Original Factory Shop Enter Administration With 2,500 Jobs at Risk

The process will test buyer interest following Modella’s failed rescue efforts.

Overview

  • Court records show notices of intention to appoint administrators were filed on Monday for both retailers.
  • A total of 1,355 employees at 154 Claire’s shops in the UK and Ireland and 1,220 staff across 140 TOFS stores are at risk of redundancy.
  • Modella said last-ditch attempts to save the businesses failed and neither has a realistic path to profitability, citing weak consumer confidence, rising costs and a sharp pre-Christmas footfall drop.
  • Interpath is expected to oversee TOFS and Kroll Claire’s, with trading likely to continue while buyers are sought, according to industry sources.
  • If no buyer emerges, closures and liquidation remain possible, underscoring ongoing pressures on UK high streets after prior restructurings and ownership changes last year.