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Claire’s and The Original Factory Shop Put Into Administration, 2,500 Jobs at Risk

Modella Capital says a sharp pre-Christmas drop in store footfall left no viable path to profitability.

Overview

  • Court records show notices of intention to appoint administrators were filed for both chains on Monday, providing temporary protection from creditors.
  • Kroll is reported to be lined up to oversee Claire’s, while Interpath is expected to handle The Original Factory Shop.
  • Sources indicate shops are likely to keep trading during the process as administrators explore potential buyers.
  • About 1,355 roles at 154 Claire’s stores in the UK and Ireland and roughly 1,220 roles at 140 TOFS locations are at risk.
  • Both retailers were bought by Modella in rescue deals last year, with pressures highlighted by Sensormatic data showing a 13.1% year-on-year footfall drop on December 23.