Two major UK high street shops enter administration

2,500 jobs are at risk.

Over 2,500 jobs are at risk.

The two stores are Claire's and The Original Factory Shop.

Modella Capital, which owns both chains, have said that the retailers will enter insolvency proceedings across the UK and Ireland.

Administration is said to give them 'breathing space' to find a new buyer.

Modella added that 'alarmingly' low Christmas trading put both stores in a 'vulnerable' position, saying: "This has been a very tough decision."

They added: "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.

"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."