The UK high street faces yet another blow as Modella Capital, the investment firm behind several well-known retail chains, has been forced to place both Claire’s accessories stores and The Original Factory Shop (TOFS) into administration. This marks a particularly difficult moment for British retail, with roughly 2,575 jobs now hanging in the balance across both struggling chains.
The situation is especially grim for Claire’s, which is entering administration for the second time in less than a year. Modella had swooped in last September to rescue the brand through an asset purchase that saved 156 stores and around 1,000 jobs. That rescue involved closing 145 locations and cutting roughly 1,000 positions.
Now the remaining 134 stores face an uncertain future, putting 1,355 employees at risk. Claire’s has become something of a frequent flyer in bankruptcy courts, having also filed for protection in the United States in both 2018 and August 2025. Companies in distress often focus on preserving cash to try to weather downturns.
TOFS finds itself in equally troubled waters, with 140 stores and 1,220 jobs on the chopping block. The discount chain was already vulnerable when Modella acquired it, carrying baggage from previous ownership. Scheduled closures include locations in Lydney, Stroud, Cinderford, and Ross-on-Wye.
Modella cited several reasons for pulling the plug on both retailers. According to the firm, neither chain had any realistic chance of turning a profit. Christmas trading proved particularly brutal, and the broader economic picture remains bleak.
Rising costs, weak consumer confidence, and unfavorable government policies created a perfect storm. Claire’s also struggled against fierce competition from ultra-cheap online retailers like Temu and Shein, which successfully captured its core tween audience.
The company’s outdated stores and clunky website didn’t help matters either. Despite last-ditch rescue efforts, Modella concluded that seeking administrators represented the only viable path forward. The firm now hopes to find buyers willing to invest in restructured versions of these brands. Modella Capital also owns UK retailers TGJones and Hobbycraft, which face their own challenges in the current retail climate. The fund had conducted intensive rescue efforts before ultimately filing its intention to appoint an administrator for both chains.
However, success will depend heavily on whether anyone believes these chains can thrive in today’s punishing retail environment. The fate of thousands of workers rests on that answer.
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