Rachel Reeves criticised as Claire's and Original Factory Shop enter administration

Modella Capital has placed Claire's Accessories UK & Ireland and The Original Factory Shop into administration, citing adverse fiscal policy, high inflation and weak consumer demand; the announcement puts around 2,500 UK jobs at risk.

Modella Capital has announced that Claire's Accessories UK & Ireland and The Original Factory Shop are being placed into administration. The firm said it had made last-ditch attempts to rescue both businesses but concluded neither had a realistic prospect of trading profitably. The company cited highly adverse government fiscal policies, high inflation and weak consumer confidence as contributing factors. The move was reported to put about 2,500 UK jobs at risk. Key points: - Modella Capital has initiated insolvency proceedings and placed both chains into administration. - The firm said it attempted rescue efforts but judged continued profitable trading was not realistic. - It cited adverse fiscal policy, inflation and weak consumer demand as key pressures, and reported around 2,500 jobs affected in the UK. - The wider piece also notes concern in the hospitality sector over rising business rates, reports of protests by some pubs, and statements that further relief has been ruled out by the Treasury. Summary: The administration move ends normal trading control and begins insolvency procedures for the two retailers, with immediate implications for staff and suppliers. The announcement has prompted wider discussion about the effect of fiscal measures on retail and hospitality sectors. Undetermined at this time.