The British high street has been dealt another severe blow as two prominent retail chains have fallen into administration, threatening the future of nearly 300 stores nationwide.
Claire's, the popular accessories retailer, and The Original Factory Shop (TOFS), a discount home and clothing chain, have both collapsed. The move, announced by their owner Modella Capital, puts a total of 294 shops and approximately 2,500 employees in immediate jeopardy.
A 'Very Tough Decision' in a Challenging Climate
Modella Capital, a private equity firm which recently acquired the high street arm of WH Smith, stated that the decision to place both businesses into administration was unavoidable. The firm cited an "extremely challenging" trading environment on UK high streets.
In a statement released on Monday, a spokesperson said: "This has been a very tough decision. 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."
The company pointed to a toxic combination of weak consumer confidence, adverse government fiscal policies, and persistent cost inflation as the primary reasons for the failure. This collapse highlights the intense pressure facing established brick-and-mortar retailers across the country.
Full List of Locations Now at Risk
While all stores continue to trade for now, their futures are uncertain. The administration process puts every location at potential risk of closure unless a buyer can be found. The affected shops are spread across the entire United Kingdom, from major cities to smaller market towns.
The Claire's stores at risk include prominent sites in shopping centres and high streets such as Birmingham Bullring, London's Stratford and White City, Manchester Arndale, Glasgow Fort, and Cardiff. The Original Factory Shop locations are often found in community-focused towns, including places like Alnwick, Barmouth, Bridport, Cromer, Frodsham, and Oban.
The widespread geographical spread of the closures means the economic impact will be felt in hundreds of communities. Employees and shoppers are now awaiting news on whether administrators can secure a future for any part of the businesses.
What Happens Next for Staff and Shoppers?
The immediate priority for administrators will be to assess the viability of the store portfolios. They may attempt to sell the businesses as going concerns, seek buyers for parts of the operations, or begin winding down operations if no rescue is possible.
For the 2,500 staff members, this period brings significant anxiety about job security. For customers, gift cards and deposits may be at risk, though administrators will provide guidance in the coming days.
This double collapse serves as a stark reminder of the fragility of the UK retail sector. It follows a pattern of well-known brands struggling to adapt to changing shopping habits, rising costs, and economic headwinds. The fate of these 294 stores will be closely watched as a barometer for the health of the nation's high streets in 2026.
