Claire’s and The Original Factory Shop face administration, 2,550 jobs at risk

Core Viewpoint - Modella Capital has initiated insolvency proceedings for retail chains Claire's and The Original Factory Shop, putting 2,550 jobs at risk across the UK [1][5]. Group 1: Claire's - Modella acquired Claire's in September after the retailer entered administration for the second time, leading to approximately 1,000 redundancies and the closure of 145 outlets [1]. - After purchasing about half of Claire's UK estate, Modella continued to operate 154 stores, but the proposed administration could impact 1,350 roles [2]. - Advisory company Kroll is expected to oversee the administration process for Claire's [2]. Group 2: The Original Factory Shop - The Original Factory Shop, which operates 140 stores, was acquired by Modella less than a year ago, and around 1,200 jobs are now at risk [3]. - The company has submitted a notice to the High Court for the appointment of administrators, with Interpath expected to be appointed to manage the process [3]. - The Original Factory Shop had recently completed a restructuring program, including relocating its head office and securing rent reductions [4]. Group 3: Industry Context - Both retailers were already in a fragile state prior to acquisition, facing challenges from the high street's condition and government policy impacts [4]. - The potential administrations are occurring amid ongoing declines in UK high street sales, as consumers increasingly shift to online shopping [5]. - Modella stated that despite intensive efforts to save both businesses, there is no realistic possibility for them to trade profitably again [5].