Overview
- Court records show notices of intention to appoint administrators were filed for both chains on Monday afternoon, beginning formal insolvency proceedings.
- About 1,355 employees at 154 Claire’s shops in the UK and Ireland and 1,220 staff at 140 The Original Factory Shop stores are at risk.
- Industry sources report Kroll is expected to oversee Claire’s and Interpath Advisory is expected to handle TOFS, with administrators anticipated to seek buyers.
- Modella cited very weak consumer confidence, higher costs, adverse fiscal policies and a sharp pre-Christmas footfall drop as reasons for the move.
- Sources indicate administrators are likely to keep stores trading for a period while sale options are explored, though closures remain possible if no buyer emerges.