Modella Capital in spotlight as Claire's and The Original Factory Shop face collapse

Modella Capital, a UK restructuring-focused investor, bought Claire's and The Original Factory Shop within the last year; the chains now face expected collapse with about 2,550 jobs at risk.

Claire's and The Original Factory Shop are expected to collapse, putting about 2,550 jobs at risk. The situation has drawn attention because both chains were bought by Modella Capital within the last year. Modella is a UK investor formed by restructuring professionals and has acquired several troubled retailers recently. The firm has used company voluntary arrangements (CVAs) to reduce rents and close stores in prior turnarounds. Known details: - About 2,550 jobs are at risk across Claire's (154 stores) and The Original Factory Shop (140 stores). - Modella Capital bought both chains within the last year and previously acquired Hobbycraft and the high-street business of WH Smith, renamed TG Jones. - The firm is part of the Hay Wain group linked to Jamie Constable and has become known for rapid restructuring steps such as CVAs and store closures. - In September, Modella took a charge on Claire's UK assets as security for a loan reported to be about £7.5m, which could affect the order of creditor payments if assets are sold. Summary: The expected collapses place many retail jobs and supplier claims at stake and could lead to widespread store closures. Undetermined at this time.