Claire's collapse into administration renews high street fears

The British operations of Claire's, the accessories retailer, have collapsed into administration just four months after their last brush with insolvency, putting more than 1,000 high street jobs at risk.

Sky News understands that insolvency practitioners from Kroll were formally appointed as administrators to Claire's UK and Ireland earlier on Monday.

It comes three weeks after Sky News revealed that the chain's owner, Modella Capital, filed a notice of intention to appoint administrators to both Claire's and TOFS, the discount retailer it also acquired last year.

In a statement on Monday evening, Kroll said: "Philip Dakin, Benjamin Wiles and Janet Burt of Kroll Advisory Ltd were appointed as joint administrators of CAUKI Ltd on 26 January 2026.

"The company is continuing to trade during this period."

Modella bought the company last September, several months after Claire's had filed for insolvency in both the US and the UK.

Retail analysts are sceptical that a buyer will emerge for many of the remaining 156 Claire's stores in Britain and Ireland.

Sources close to the situation said earlier this month that a combination of government policy - with a significantly increased tax burden placed on the retail industry - and demands from landlords to take back swathes of Claires' shops, had rendered the future of the chain unviable.

The retail industry continues to face significant headwinds, with chains including Poundland having closed significant numbers of shops.

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Modella also owns businesses including WH Smith's historic high street estate, which it has rebranded as TG Jones, as well as Hobbycraft.

Claire's had previously traded from nearly 300 shops in the UK, but has been hit by changes in consumer behaviour among its traditional teenage customer base.

Significant numbers of jobs were lost in restructuring processes prior to Modella's purchase of the business.

(c) Sky News 2026: Claire's collapse into administration renews high street fears