Claire's and The Original Factory Shop are being put into administration: 2,500 jobs at risk
A spokesman for the owner said: 'This has been a very tough decision. We have worked intensively in an effort to save both businesses.'
By ASHLEIGH MCCAULL
Published: 18:58 GMT, 5 January 2026 | Updated: 19:59 GMT, 5 January 2026
Around 2,500 jobs could be axed after high street chains Claire's and The Original Factory Shop were put into administration.
Owner Modella Capital announced the 'very sad' news on Monday evening, admitting it had been 'a very tough decision'.
A spokesman said: 'Very sadly, we have had to initiate insolvency proceedings for The Original Factory Shop (TOFS) and Claire's Accessories UK & Ireland.
'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.
'In these circumstances, administration is the only option. In both cases, the legacy effects of trading prior to our ownership left them highly vulnerable.
'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.
'A combination of very weak consumer confidence, highly adverse government fiscal policies and continued cost inflation is causing many established and much-loved businesses to suffer badly.
Shoppers walking past a Claire's Accessories shop on Oxford Street in London in August 2025
'It's a simple fact that if retailers can't make money, they risk having to close - and jobs across the country are lost.'
Claire's future had long been up in the air after it filed for bankruptcy in August last year.
Claire's — the Chicago-born chain that helped generations of tweens pierce their ears and make friendship bracelets — declared Chapter 11 earlier this month for the second time. It last filed Chapter 11 bankruptcy protection in 2018.
Founded in 1961, Claire's stores have become a sort of rite of passage for middle school-aged kids, featuring a vast array of glittery plastic earrings, necklaces, rings, keychains, and hats.
The cheap, glitzy fashions often have price tags under $10.