Claire’s and The Original Factory Shop enter administration proceedings

This week has been yet another rife in administration proceedings. Claire’s UK and Ireland operations have officially collapsed, as has discount retailer The Original Factory Shop (TFOS), collectively putting around over 2,180 jobs at risk. Both companies are owned by Modella Capital.

Claire’s administration was confirmed to Sky News on Monday, when Kroll announced it was formally appointed as administrator. In a statement to the publication, the advisory firm said the company would continue to trade during this period.

Interpath, meanwhile, will oversee TFOS’ proceedings, the BBC reported. The company’s 137 shops will remain operational as an assessment of the business goes underway.

While Claire’s proceedings could put at risk over 1,000 jobs, TFOS administration is said to be putting 1,180 jobs at risk.

Modella had filed a notice of intention to appoint administrators for both the accessories retailer and TFOS earlier this month, stating at the time that it had “worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them”.

Ultimately, the group determined that “neither has a realistic possibility of trading profitably again” due to a “combination of very weak consumer confidence, highly adverse government fiscal policies and continued cost inflation”.

For TFOS, the filing comes just under a year after Modella stepped up to rescue the chain retailer from a similar outcome, with administrators stating that trading challenges have only continued to impact the business.

Modella also saved Claire’s from administration towards the end of last year, agreeing to acquire more than half of its UK and Ireland assets, including 156 stores.