Two UK high street giants are on the brink of administration. Claire’s and the Original Factory Shop are believed to be filing notices of intention just days after the start of the new year.
The two brands have a combined 300 stores across the UK and employ over 2,500 people. They are both owned by investment firm Modella Capital, which recently bought WHSmith’s high street stores and rebranded them as TGJones, and is connected to the sales of Ted Baker, Paperchase, Jigsaw, Hobbycraft and Lakeland. The firm acquired both brands last year, but sources told Sky News that a combination of increased tax burdens and demands from landlords has rendered them no longer viable. The administrations are expected to be handled by Interpath Advisory for The Original Factory Shop and Kroll for Claire’s.
The Original Factory Shop was reportedly pushed into administration due to challenges caused last year by a move to a new third-party logistics provider.
Claire’s was damaged after its biggest concession partner terminated their agreement following the company’s takeover by Modella last autumn. It has also struggled to adapt to the changing consumer tastes of its target market.
Claire’s is an American retailer of accessories, jewellery, and toys primarily aimed towards tween and teen girls, and young women.
Formerly known as Claire’s Boutiques, Claire’s Boutique and Claire’s Accessories, it was founded in 1961 and is based in Chicago, Illinois.
The Factory Shop Limited, trading as The Original Factory Shop, is a discount department store chain founded in 1969. It currently operates almost two hundred stores across the United Kingdom.
The chain sells fashion, homewares, toys and personal care products. Stock can be sourced from the chain’s own lines, branded products, or cut-label products from high-street chains or supermarkets.
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