Labour tax hikes blamed for collapse of two high street chains

Claire's and The Original Factory Shop have entered administration, putting about 2,500 jobs at risk; their owner Modella Capital said 'highly adverse government fiscal policies', including recent tax rises, were among the factors reported as affecting trading.

Two well-known retailers, Claire's and The Original Factory Shop (TOFS), have entered administration amid difficult conditions on the UK high street. Their owner, Modella Capital, said it had worked to save the businesses but that neither had a realistic prospect of trading profitably. The company reported that weak consumer confidence, sustained cost inflation and recent government fiscal measures were among the pressures facing the firms. Key facts: - Claire's and TOFS have been placed into administration, as reported by Modella Capital. - Around 2,500 jobs are reported to be at risk across the two chains. - Modella said 'highly adverse government fiscal policies' and weak pre-Christmas trading were factors affecting the businesses. - The company stated that administration was the only option because the stores could not be made profitable again. Summary: The administrations mark a further sign of strain for parts of the UK high street and place thousands of roles in uncertainty. Modella and some political figures have pointed to consumer weakness and recent fiscal changes as contributing elements. Undetermined at this time.