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 United Kingdom and Ireland.
Last-Ditch Rescue Attempts Fail
Their owner, investment firm Modella Capital, confirmed the move on Tuesday, 6 January 2026, stating that final efforts to save the businesses had been unsuccessful. A notice of intention to appoint administrators was filed for both chains on Monday afternoon.
A company spokesman said, "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." He added that administration was now the only remaining option.
Scale of the Job Losses and Store Impact
The collapse puts 1,355 staff at 154 Claire's shops in the UK and Ireland in jeopardy. For The Original Factory Shop, 1,220 employees across 140 stores face potential redundancy.
Court records confirm the insolvency proceedings are underway. The administrations are expected to be handled by Interpath Advisory alongside risk advisory firm Kroll.
Owner Blames Tough High Street Climate
Modella Capital, which bought the chains last year after they underwent restructuring, pointed to a hostile trading environment. The firm stated that "very weak consumer confidence, highly adverse government fiscal policies, and continued cost inflation" were crippling established businesses.
"The climate on the high street remains extremely challenging, and TOFS and Claire's are not alone in experiencing difficulties," Modella said. "It's a simple fact that if retailers can't make money, they risk having to close, and jobs across the country are lost."
The investment firm also noted that legacy issues from before its ownership left both retailers highly vulnerable to current market pressures.
Recent History of the Struggling Chains
Modella bought more than 150 Claire's shops last year, but a separate 145 stores were excluded from the deal and subsequently closed. The fashion accessories chain had previously appointed administrators for its UK and Ireland arm after filing for bankruptcy in the United States.
The discount department store chain TOFS was sold to Modella in February 2025. Modella has become a significant player in UK retail, having also acquired WH Smith's high street chain last year and taking over arts and crafts retailer Hobbycraft in 2024.
