Two more high street names are set to disappear with two companies going into administration.
Barely a week into the new year and retail jobs are already at risk in both Holbeach and Spalding.
The Original Factory Shop, which has a branch on Fleet Street, Holbeach, and Claire’s, with a branch at Springfields, are both likely to close in the coming days.
Both retailers employ around 2,500 people across the country and those jobs are at risk.
Modella Capital owns both chains and said they are going into insolvency proceedings. It hoped the move would give more time to potentially find a new buyer.
The company purchased Claire’s in September last year, six weeks after it was in administration. The deal saw an initial 1,000 job losses and the closure of 145 stores.
It has owned The Original Factory Shop since early last year and said both chains were ‘highly vulnerable’ even before it bought them.
“This has been a very tough decision. We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again,” said a statement.
It added that challenges, including an ‘extremely challenging’ climate in the high street, and government policy aren’t helping.
“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,” the statement continued.
The closures come on the back of other recent losses in Spalding, including its branch of The Original Factory Shop and Bookmark.
South Holland District Council Leader Nick Worth said: “As we know, the retail sector is under tremendous pressure from online shopping and changes in consumer behaviour. These closures impact not only the local economy but also the lives of those employed by these stores.
“It is a challenging time for everyone involved, and our primary concern is to support those affected, ensuring they have access to the necessary resources and assistance as they navigate this difficult
period.”
