Around 150 Claire’s stores are now at risk after the firm fell into administration again
Over 1,000 jobs are at risk after the major accessories chain Claire’s collapsed into administration.
Around 150 stores are now at risk, after administrators from Kroll were appointed to handle insolvency just four months after it was rescued. Kroll said in a statement released today that Claire’s would continue to trade during the current period.
Earlier this month, Claire’s and The Original Factory Shop (TOFS) were understood to be filing notices of intention to appoint administrations. Modella Capital, which owns Claire’s and bought the company in September last year. confirmed the two were being put into administration.
Nicholas Found, head of commercial content at Retail Economics, previously warned Claire’s could not “evolve fast enough” to compete with “nimble online platforms” such as Temu and TikTok Shop.
Temu’s ultra-low pricing and TikTok Shop’s ability to turn its social media users into customers has diminished the relevance of traditional high street players, “especially in fashion accessories where impulse buys are easy to substitute”, he said.
Similarly, Sean Moran, a restructuring and insolvency partner at Shakespeare Martineau, said the fashion and accessories industry has been overwhelmed by new competition from online retailers in recent years, putting increased pressure on high street brands.
“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”, he said.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), had said the rising cost of living has created a challenging environment for retailers, so “it is little surprise to see some businesses falling into administration”.
“The situation could become worse if government policies add significantly to this burden in 2026”, she added.
Modella said previously tough retail conditions, including those from government policies, were causing British businesses like Claire’s to “suffer badly”.
Audit and consulting firm RSM UK predicted that the retail sector will continue to grapple with fragile consumer confidence in 2026, along with competing influence from influencers and social media brands.
Jacqui Baker, its head of retail, said 2025 saw the “growing dominance of social media in the retail sector, particularly when it comes to product discovery”.
“Younger consumers (18-24 years old) are more likely to discover products through TikTok and Instagram than search engines,” she said.
Meanwhile, Mr Found stressed that high street brands like Claire’s still have value but that “sustained relevance requires a reset, including sharper positioning, storytelling, and a clear understanding of what their target customers value today”.
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