Two well-known high street retailers are facing a fight for survival, putting thousands of jobs at risk just weeks into the new year.
Claire’s and The Original Factory Shop are on the brink of collapse, with more than 2,000 roles potentially under threat in another blow to Britain’s struggling retail sector.
Sky News reports that both chains are expected to file notices of intention to appoint administrators, just days after the end of the crucial Christmas trading period.
The move would give Claire’s and The Original Factory Shop short-term protection from creditors, buying them time to explore rescue options.
It also highlights the fragile state of the UK high street, as major retailers prepare to reveal how they performed over the festive season.
The two chains, which between them trade from just over 300 stores and employ about 2,500 people, are both owned by the investment firm Modella Capital.
The group bought both businesses in separate deals over several months last year, taking on TOFS when it was already close to collapse and Claire’s after administrators had been called in.
Sources said a mix of government policy and rising costs has left both chains struggling to survive.
Sources said a mix of government policy and rising costs has left both chains struggling to survive
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PAThey pointed to a much higher tax burden on retailers, along with pressure from landlords seeking to take back large numbers of stores occupied by Claire’s and The Original Factory Shop.
Together, these factors are understood to have made it impossible for either chain to continue operating in its current form, raising fresh concerns about the future of jobs and shops on the British high street.
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