A NATIONAL chain which has a store in Stroud is being put into administration.
High street chains Claire’s and The Original Factory Shop, which has a store in Cainscross, Stroud, are being put into administration, after their owner said “last-ditch” measures had fallen through, putting about 2,500 UK staff at risk of redundancy.
The two retailers had already undergone restructuring and were bought by investment firm Modella Capital last year.
Modella said it had made the “tough decision” to kickstart insolvency proceedings for the businesses.
It will mean 1,355 employees in the UK and Ireland at 154 Claire’s shops will be put at risk, and 1,220 staff across 140 TOFS’ stores.
Court records show that a notice of intention to appoint an administrator was filed in relation to both chains on Monday afternoon.
A spokesperson for the company said: “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.”
Modella said tough retail conditions, including from government policies, were causing British businesses to “suffer”.
“The climate on the high street remains extremely challenging, and TOFS and Claire’s are not alone in experiencing difficulties,” the firm 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.
“It’s a simple fact that if retailers can’t make money, they risk having to close, and jobs across the country are lost.”
Modella bought more than 150 Claire’s shops last year, but 145 were not included in the deal, leading to their closure.
The fashion accessories chain had appointed administrators for its UK and Ireland business after filing for bankruptcy in the US.
TOFS, a discount department store chain, was sold to the investment firm in February.
Modella has become a significant force in the British retail industry, having bought WH Smith’s high street chain last year and taking over arts and crafts retailer Hobbycraft in 2024.
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