Claire’s and The Original Factory Shop to enter administration
Modella Capital has announced that Claire’s and The Original Factory Shop are being put into administration in a move that will put 2.500 jobs at risk.
The company acquired The Original Factory Shop early last year from private equity firm Duke Street Capital. It bought Claire’s out of administration last September in a sale that included 156 Claire’s stores in the UK and Ireland.
Modella Capital also owns Hobbycraft and TG Jones.
In a statement, the firm said: “Very sadly we have had to initiate insolvency proceedings for The Original Factory Shop (TOFS) and Claire’s Accessories UK & Ireland.
Subscribe to TRB“This has been a very tough decision. We have worked intensively in a effort to save both businesses having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again.
“In these circumstances administration is the only option. In both cases, the legacy effects of trading prior to our ownership has left them highly vulnerable.
“The climate on the high street remains extremely challenging and TOFS and Claire’s are not alone in experiencing difficulties.
“This is borne out by recent Sensormatic statistics and other data sources suggesting an alarming drop-off in pre-Christmas footfall.
“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.”
The news means that around 1,350 jobs are at risk at Claire’s and around 1,200 at The Original Factory Shop.
