Claire's collapse puts Modella and high street turnaround firms under scrutiny

Claire's has collapsed after ownership by Modella, which is also planning to close The Original Factory Shop; Modella has acquired several distressed retailers and used company voluntary arrangements and other restructuring measures.

Claire's collapse came while the chain was owned by Modella, a turnaround investor that has been buying several distressed high street retailers. The situation has drawn attention because Modella is also planning to close The Original Factory Shop at a reported further cost in jobs. The firm has completed a rapid series of acquisitions since mid-2024 and has applied company voluntary arrangements and other restructuring steps across those businesses. Observers and some industry figures have questioned how Modella's approach is affecting the retailers it has taken on. What is known: - Claire's Accessories has collapsed while under Modella's ownership, as reported. - Modella is reportedly planning to close The Original Factory Shop, a move described as involving around 1,200 further jobs. - Since August 2024 Modella has acquired several distressed retailers including Hobbycraft, The Original Factory Shop, WH Smith's high street stores (rebranded as TG Jones), Wynsors World of Shoes and Claire's. - The company has used company voluntary arrangements (CVAs), store closures, outsourcing decisions and other cost-cutting measures as part of its restructurings. Summary: The developments highlight scrutiny of Modella's rapid expansion and restructuring methods and the consequences for the chains it has bought. Undetermined at this time.