More than 2,000 jobs are under threat as two major UK retail chains, Claire’s and The Original Factory Shop (TOFS) are close to going bankrupt.
The retailers are reportedly preparing to enter administration just after the crucial Christmas period.
As per Sky News, the filings will buy both Claire's and TOFS a temporary relief from their creditors, giving them some time to manage their financial problems.
Claire’s and TOFS, owned by the investment company Modella Capital, together operate around 300 stores and employ roughly 2,500 people.
Modella also owns other companies including the historic high street stores of WH Smith which it has renamed TG Jones and the craft store chain Hobbycraft.
As per the outlet, a mix of factors is threatening the survival of Claire's and TOFS including higher taxes on the retail industry and landlords demanding the return of many of their shops.
Two companies, Interpath Advisory and Kroll are expected to manage administrations for TOFS and Claire's respectively.
Interpath Advisory had previously managed a company voluntary arrangement for TOFS.
The administrators are expected to keep the stores open and running while trying to find buyers for both businesses.
