High street shop Claire’s is in administration putting 1,355 jobs at risk.
It is the second time the store has entered administration, with Modella Capital purchasing some Claire’s stores in September after their last collapse.
Modella bought 150 shops, but a further 145 of their stores were closed with around 1,000 job losses.
They also bought The Original Factory Shop which they announced has entered into administration as well.
A spokesperson for Modella Capital said: “We have worked intensively in an 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 left them highly vulnerable.”
But like many high street shops Claire’s had been struggling for a period of time and had been under growing financial pressure.
In February 2024, the UK business posted a pre-tax loss of £4m and has outstanding loans of £355m due in December 2026.
The Modella spokesperson added: “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.”
Featured image: Megan Rogers-Jones
