Key Takeaways

• Claire’s Accessories and The Original Factory Shop are entering administration, just days after the holiday shopping season. WithClaire’s, which filed for bankruptcy in the US last year under the weight of over £500m in debt, was partially rescued by Modella, saving 156 UK stores and 1,000 jobs. However, nearly half its footprint and workforce were lost in the process. Now, the remaining stores are once again at risk.
• TOFS (The Original Factory Shop), employing around 1,800 people across 180 stores, was acquired by Modella in February 2025. Less than a year later, around 1,200 of those jobs are reportedly on the line.
• more than 2,200 jobs at risk, this already sets up the retail industry for a turbulent year.
• Modella Capital, the owner of both chains, cites plummeting footfall and harsh market conditions as the reason behind the collapse. This marks a critical moment for UK retail, signalling potential wider distress in the discount and fashion accessory sectors.

Two Well Known Retailers on the Verge of Administration

Two household names on the UK high street are facing administration, dealing another blow to the retail landscape in 2026. Claire’s Accessories, famous for tween jewellery and ear piercings, and The Original Factory Shop, a value department store, are both filing notices to appoint administrators.

According to their owner, Modella Capital, the decision follows what they described as an “extremely challenging” trading environment, worsened by an “alarming drop-off” in footfall before Christmas.

What led to this level of financial distress?

Claire’s, which filed for bankruptcy in the US last year under the weight of over £500m in debt, was partially rescued by Modella, saving 156 UK stores and 1,000 jobs. However, nearly half its footprint and workforce were lost in the process. Now, the remaining stores are once again at risk.

TOFS (The Original Factory Shop), employing around 1,800 people across 180 stores, was acquired by Modella in February 2025. Less than a year later, around 1,200 of those jobs are reportedly on the line. This isn’t just about two brands struggling. It’s about the future of high street retail in the UK.

In a post-pandemic economy dominated by e-commerce, many physical retailers are facing a triple threat:

• Sky-high rents and operating costs
• Changing consumer habits
• A cost-of-living squeeze impacting discretionary spending

If Claire’s and TOFS, two seemingly resilient discount retailers, can’t make it through peak season, it raises red flags for others. Explore how the retail sector is being impacted by insolvency

What broader challenges are shaping UK retail right now?

Modella Capital is not new to this game. They're known for acquiring distressed consumer brands. But even private equity-backed interventions aren’t enough when consumer confidence is low and footfall is drying up. Retail analyst Fiona B. commented, “This signals that even ‘value’ isn’t safe anymore. People aren’t just trading down, they’re buying less, full stop.”

What happens next for Claire’s, TOFS, and the people they employ?

Administrators will assess whether any part of the businesses can be sold, restructured, or salvaged. But with two strikes already on Claire’s in less than 18 months, optimism is muted.

Employees, customers, and suppliers now await answers. For the rest of the UK retail sector, this might not be the last domino to fall. Learn more about how these administrations can play out here.

FAQ: Claire’s and TOFS Administration

Why are Claire’s and The Original Factory Shop entering administration?

Both chains have struggled with declining footfall, rising costs, and post-pandemic retail challenges. Their owner, Modella Capital, cited these pressures as unsustainable.

How many jobs are at risk?

Approximately 2,200 roles are threatened, 1,000 at Claire’s and 1,200 at TOFS.

Will stores close immediately?

Not necessarily. The administration process may explore restructuring, selling assets, or finding buyers before any closures.

Where can I learn more about business administration in retail?

Visit our retail administration hub for industry-specific insights.