Two major retailers are on the brink of collapse, putting around 2,500 jobs at risk.<\/p>\n
The Original Factory Shop (TOFS) and Claire’s have sought court protection from creditors in a damaging start to the year for the retail sector.<\/p>\n
Both companies were bought last year by investment group Modella but have now filed separate notices of intention to appoint administrators and declared that “administration is the only option”.<\/p>\n
In a statement, a spokesperson for Modella Capital said: “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.<\/p>\n
“It\u2019s a simple fact that if retailers can\u2019t make money, they risk having to close \u2013 and jobs across the country are lost.”<\/p>\n
Interpath is advising discount retailer TOFS and Kroll is lined up to take control of fashion accessories brand Claire’s.<\/p>\n
The two retailers have struggled for a long time. TOFS was bought by Modella in early 2025, but within months had put it though a CVA, closing stores and cutting jobs.<\/p>\n
TOFS has 160 stores across the country and employs more than 1,500 staff, generated sales of around \u00a310m-a-month.<\/p>\n
Claire’s closed nearly half of its 278 stores when Modella bought the chain out of administration in September, with around 1,000 jobs lost.<\/p>\n
The spokesperson added: “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.<\/p>\n
“In these circumstances, administration is the only option. In both cases, the legacy effects of trading prior to our ownership left them highly vulnerable.<\/p>\n
“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.”<\/p>\n
Modella also owns the former WHSmith high street business, now called TGJones, and Hobbycraft.<\/p>\n
The retail sector is under pressure, from the continued squeeze on consumer spending and rising costs while it battles the long-term trend away from bricks-and-mortar retail.<\/p>\n
TOFS occupies a similar space to Wilko, the 400-store chain which failed in 2023 after 90 years.<\/p>\n
TOFS was founded in 1969 and was acquired by Duke Street in 2007, from the private equity arm of Barclays for \u00a368.5m. Modella has not revealed how much it paid last year when Duke Street exited.<\/p>\n","protected":false},"excerpt":{"rendered":"
‘Administration is the only option’ for the Modella-owned chains<\/p>\n","protected":false},"author":18,"featured_media":2164994,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47995],"coauthors":[81],"class_list":["post-2164993","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail","tag-greater-birmingham","tag-lancashire","tag-national","tag-top-story"],"yoast_head":"\n