Fear for High Street business in Harrogate as owners put chain into administration
A Harrogate shop is facing an uncertain future after its parent company announced it was going into administration after “last-ditch” measures fell through.
Located on Cambridge Street in Victoria Shopping Centre, the Harrogate branch of Claire's offers accessories, jewellery, and ear piercing services.
Staff are now waiting to see what happens after the High Street chain was put into administration nationally along with The Original Factory Shop (TOFS) in a move which retail industry insiders are describing as a potential business “collapse”.
Last year saw half of Claire's then 278 shops in the UK saved from administration after investment firm Modella Capital stepped in to buy it.
But the new owners have announced they have now started insolvency proceedings for both chains, saying trading is “extremely challenging” with "alarmingly" low Christmas trading.
"We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them,” a spokesperson for Modella Capital said.
"But a combination of very weak consumer confidence, highly adverse government fiscal policies and continued cost inflation is causing many established and much-loved businesses to suffer badly."
Currently, Claire's has 154 stores and 1,355 staff, while The Original Factory Shop has 140 stores and 1,220 staff.
After undergoing a recent restructuring, Modella Capital now hopes the administration will give it breathing space to find a new buyer.
The company has been in the news a lot in recent years, having bought WH Smith's high street chain and taken over arts and crafts retailer Hobbycraft.