The retailer's private equity owner, Modella Capital, appointed Kroll to oversee the administration process earlier in 2025. Modella said it made the 'tough decision' to start insolvency proceedings in January after last-ditch measures failed. A spokesperson for Modella said the company worked intensively to save both Claire's and The Original Factory Shop (TOFS), but neither had a realistic possibility of trading profitably again, adding that administration was the only option. The spokesperson attributed the failure to legacy effects of trading prior to Modella's ownership, which left the businesses highly vulnerable, as well as tough retail conditions including weak consumer confidence, adverse government fiscal policies, and cost inflation. Modella noted that these conditions are causing many established British businesses to suffer.
The closures do not affect Claire's 356 concessions, many within Asda stores, nor its head office operations. However, of the more than 150 Claire's shops Modella bought last year, 145 were not included in the deal and have now closed. A Kroll spokesman said an interested party is in discussion with a number of landlords with a view to taking new leases for some of the sites, but no details about the party or potential timeline have been disclosed. It remains unclear what will happen to the concessions and head office operations.
especially in fashion accessories where impulse buys are easy to substitute
According to The Independent - UK News, Nicholas Found, head of commercial content at Retail Economics, stated that Claire's could not evolve fast enough to compete with nimble online platforms like Temu and TikTok Shop. He said that Temu's ultra-low pricing and TikTok Shop's social media conversion have diminished the relevance of traditional high street players, especially in fashion accessories where impulse buys are easy to substitute. Similarly, Sean Moran, restructuring partner at Shakespeare Martineau, told The Independent - UK News that the fashion and accessories industry has been overwhelmed by new competition from online retailers, putting increased pressure on high street brands. He warned that these tough market conditions will not only affect Claire's and that other retail giants may struggle in the coming months. The identity of the interested party discussing new leases has not been disclosed, and it is unknown which specific government fiscal policies are negatively affecting retailers.
These tough market conditions will by no means only be affecting Claire’s, and we may well see other retail giants struggle in the coming months
The climate on the high street remains extremely challenging, and TOFS and Claire’s are not alone in experiencing difficulties.
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.
It’s a simple fact that if retailers can’t make money, they risk having to close, and jobs across the country are lost.