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​Claire’s and The Original Factory Shop on brink of collapse

In January 2026, UK high street staples Claire’s and The Original Factory Shop entered administration, putting approximately 2,500 jobs and 294 stores at risk. Both retailers, owned by investment firm…

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​Claire’s and The Original Factory Shop on brink of collapse
In January 2026, UK high street staples Claire’s and The Original Factory Shop entered administration, putting approximately 2,500 jobs and 294 stores at risk. Both retailers, owned by investment firm Modella Capital, filed notices of intention to appoint administrators following a "disastrous" Christmas trading period and an "alarming" drop in footfall.

Modella, which acquired the brands in the latter part of 2025, after previous financial struggles, blamed the collapse on a "perfect storm" of high cost inflation, weak consumer confidence, and adverse government fiscal policies. While Claire’s faced stiff competition from online specialists like Temu and Shein, The Original Factory Shop was severely impacted by supply chain issues following a transition to a new logistics provider. Administrators from Kroll and Interpath are currently seeking buyers, though industry experts warn that full liquidations remain a significant risk for both chains.

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