Over 1,000 jobs are in jeopardy following the collapse of popular accessories chain Claire’s, which has been placed into administration. Approximately 150 stores are now facing the risk of closure as administrators from Kroll have been tasked with managing the insolvency, just four months after a previous rescue attempt. Kroll has stated that Claire’s will continue to operate during this period.

Earlier this month, it was reported that Claire’s and The Original Factory Shop (TOFS) were preparing to enter administration. Modella Capital, the owner of Claire’s which acquired the company in September last year, has confirmed the administration proceedings for both brands.

Nicholas Found, head of commercial content at Retail Economics, had previously cautioned that Claire’s was struggling to keep pace with agile online platforms like Temu and TikTok Shop. The competitive landscape in the fashion accessories sector has shifted with Temu’s competitive pricing and TikTok Shop’s ability to convert social media users into customers, making it challenging for traditional high street retailers to retain their market share.

Sean Moran, a restructuring and insolvency partner at Shakespeare Martineau, highlighted the intensifying competition faced by the fashion and accessories industry from online retailers, leading to mounting pressure on high street brands. He suggested that other retail giants might also encounter difficulties in the foreseeable future.

Helen Dickinson, chief executive of the British Retail Consortium (BRC), attributed the challenges faced by retailers to the escalating cost of living, resulting in some businesses succumbing to administration. She expressed concerns that additional government policies in 2026 could exacerbate the situation for struggling businesses like Claire’s.

Modella Capital previously cited the tough retail environment, compounded by government policies, as detrimental to British businesses like Claire’s. RSM UK, an audit and consulting firm, anticipated that the retail sector would continue to grapple with fragile consumer confidence in 2026, amidst increasing competition from influencers and social media brands.

Jacqui Baker, head of retail at RSM UK, emphasized the growing influence of social media in the retail sector, particularly in product discovery, with younger consumers relying more on platforms like TikTok and Instagram for product information.

Despite the challenges, Nicholas Found emphasized that high street brands like Claire’s still hold value but need to adapt to remain relevant. He suggested that a strategic reset focusing on positioning, storytelling, and understanding customer preferences is crucial for their sustained success.