The British high street faces another significant blow as Claire's, the popular accessories retailer, has collapsed into administration for the second time in just four months, placing more than 1,000 retail jobs in immediate jeopardy across the United Kingdom and Ireland.
Administration Appointment Confirmed
Insolvency practitioners from Kroll Advisory Ltd were formally appointed as joint administrators to CAUKI Ltd, which operates Claire's UK and Ireland business, on Monday 26th January 2026. The company confirmed that Philip Dakin, Benjamin Wiles and Janet Burt of Kroll would oversee the administration process while the business continues to trade during this period.
This development comes just three weeks after Sky News revealed that Modella Capital, the chain's current owner, had filed a notice of intention to appoint administrators to both Claire's and TOFS, the discount retailer it acquired last year.
Previous Rescue Attempt Fails
Modella Capital purchased Claire's UK operations last September, several months after the retailer had filed for insolvency proceedings in both the United States and the United Kingdom. This latest administration represents a dramatic reversal of fortunes for a business that had appeared to have secured a lifeline through the acquisition.
Retail analysts express significant scepticism about whether a viable buyer will emerge for many of the remaining 156 Claire's stores operating across Britain and Ireland. The chain had previously traded from nearly 300 locations in the UK before experiencing substantial contraction in recent years.
Multiple Pressures on Retail Sector
Sources close to the situation indicate that a combination of government policy changes and commercial pressures have rendered Claire's future unviable. The retail industry faces an increased tax burden alongside demands from commercial landlords seeking to reclaim substantial portions of Claire's retail estate.
The broader retail sector continues to confront significant challenges, with major chains including Poundland having closed considerable numbers of shops across the country. This latest collapse adds to growing concerns about the sustainability of traditional high street retail models.
Changing Consumer Behaviour
Claire's has been particularly affected by shifting consumer behaviour among its traditional teenage customer base, who increasingly favour online shopping and different retail experiences. The company had already undergone significant restructuring processes prior to Modella's acquisition, resulting in substantial job losses across its operations.
Modella Capital, which also owns businesses including WH Smith's historic high street estate (rebranded as TG Jones) and Hobbycraft, now faces the challenge of managing another retail collapse within its portfolio.
The administration of Claire's represents another worrying development for Britain's struggling high streets, highlighting the ongoing pressures facing traditional retail businesses amid changing shopping habits, increased operational costs, and challenging economic conditions.
