Are stores still open during administration?

Yes. Shops are trading while administrators run a sale process, so customers can usually shop, use gift cards, and return items under posted policies. The Original Factory Shop 7 and Claire’s aim to preserve value and jobs while a buyer is sought, though individual store changes may follow later.

What does administration mean for staff and suppliers?

Administration pauses some obligations while a rescue or sale is attempted. Wages for ongoing work are typically paid. Pre-appointment supplier invoices become unsecured claims, subject to procedures. The Original Factory Shop 7 and Claire’s will prioritise trading continuity to protect cash flow, inventories, and the potential for a going-concern sale.

Who might buy the businesses or assets?

Potential buyers include private equity, trade retailers, and buying groups interested in stores, brands, or distribution. Firms like Modella Capital are often active in distressed retail, but no bidder is confirmed. Value-focused operators with low costs and strong sourcing have the best chance to turn around the estates.

What should investors watch next?

Track weekly trading updates, lease negotiations, and supplier credit terms. Look for administrator proposals within about eight weeks and signals of buyer interest. The Original Factory Shop 7 progress, plus Claire’s administration developments, will guide expectations for UK retail insolvency trends through late winter.

Global Market Insights

The Original Factory Shop January 6: Enters Administration With Claire’s

ByDanny Kontos January 6, 2026

The Original Factory Shop 7 and Claire’s have entered administration after weak Christmas trading, putting about 2,500 UK jobs and roughly 300 stores at risk. Shops remain open while advisers seek buyers and steady cash flow. For investors, this signals rising UK retail insolvency pressure as costs stay high and footfall stays soft. We outline what the process means, who could be affected across the high street, and the indicators to watch as the sale process unfolds in early 2026.