Retail chains Claire’s and The Original Factory Shop are on the brink of administration, with Modella Capital initiating insolvency proceedings for both. This puts 2,550 jobs at risk in the UK. Modella bought Claire’s in September, shortly after its second administration filing, leading to the closure of 145 stores. Kroll is set to oversee Claire’s administration, impacting 1,350 roles.

Additionally, The Original Factory Shop has filed for administration, seeking help from the High Court. Modella acquired the discount homewares retailer less than a year ago, putting around 1,200 jobs in jeopardy. Interpath will be appointed to manage the administration process, granting a ten-day moratorium from creditor action. This follows the retailer’s recent restructuring efforts.

Both retailers were struggling before Modella’s acquisition, facing challenges from the high street’s conditions and government policies. The tough decision to enter administration comes amidst declining UK high street sales and the shift towards online shopping. Modella expressed efforts to save the businesses but deemed their ability to trade profitably again as unrealistic.

Read more at Yahoo Finance: Claire’s and The Original Factory Shop face administration, 2,550 jobs at risk