Retail

Claire’s and The Original Factory Shop in Administration Threat

in A guide for redundant employees in administration or insolvency situations Retail

Update 5th January 2026For the second time Claire's has filed an intention to appoint administrators and the owner Modella Capital has also done the same for the Original Factory Shop.  This puts 2500 jobs at risk and is another blow to jobs in the High Street. Modella Capital bought the chain out of administration only in September 2025.  In a statement Modella said there had been a huge drop off in trade and that administration was the only option.----------------------------It has been reported that Claire's, the fashion accessories chain, has filed an intention to appoint administrators at the court today.  Interpath have been lined up to try and rescue the company, the move puts 2,150 jobs at risk.​​​​​The company has 278 shops in the UK and 28 in Ireland but has been struggling with falling sales and fierce competition.  The US arm of the company has already gone into Chapter 11 bankruptcy protection.Claire's said all outlets will continue trading while administrators at Interpath said they will "assess options for the company" once appointed.​Mr Cramer, the chief executive, said: “This decision, while difficult, is part of our broader effort to protect the long-term value of Claire’s across all markets.”Mr Wright at Interpath said: “Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company.”​​The UK chain sits as part of the Claire’s empire, which stems from a base in a suburb of Chicago, Illinois.Claire’s French business, which has 239 stores, was forced to call in receivers last month.As such, it isn't really a UK specific problem.  The main issue has been that the teenagers and "tweens" who have been the bedrock of Claire's customer base worldwide now buy their "accessories" online, via influencers and from the likes of Temu and Shein.Many retailers have used CVAs to try and reduce costs but in the case of Claire's the problems were probably too deep and the benefit of exiting a few leases or reducing rents was not going to be enough.​A loan of £355m is due to be paid back in December 2026 and it is likely that the lenders ( who are secured so not bound by a CVA ) felt that time was up.  The last 3 years the company has lost £25m and turnover has fallen to £137m

Read
Claire’s and The Original Factory Shop in Administration Threat
TGI Logo

TGI Fridays Expected To Do A Pre Pack Administration

in A guide for redundant employees in administration or insolvency situations Retail What Does Going Into Administration Mean?

Update 5th January 2026It is understood that TGI Fridays is likely to be sold next week in a Pre Pack Administration.  It is reported that about 15-20 stores may close.  This will mean the majority of the estate will disappear.  It is expected that there will be hundreds of redundancies amongst the 2000 staff.Sugarloaf acquired the chain from Breal Capital and Calveton UK in October of this year and immediately sought to sell it. However, it has been reported that the company filed a notice of intention to appoint administrators on the 5th of December. Could it be that TGIs could go into a CVA? The CVA would only really work if the main problem was high rents or just certain outlets needed to be closed down.  The money that it owes its lender is no doubt secured so they have the power to call in administrators at any time.Without knowing more about its exact financial position it is hard to say.If the company does go into administration it is likely that a number of the restaurants, which are making money, will be snapped up by other restaurant groups and may continue to trade under the TGI brand.  If not then the owners will take advantage of their prime locations.

Read
TGI Fridays Expected To Do A Pre Pack Administration

LK Bennett in Administration Move

in A guide for redundant employees in administration or insolvency situations News Retail What Does Going Into Administration Mean?

LK Bennett filed a notice of intention to appoint administrators before Christmas.  As such, it looks like the company is going into administration for the second time. What has happened? Following the last administration the firm was ultimately acquired by Rebecca Feng, who ran the brand’s franchises in China, through Byland UK.  The estate was reduced to just 9 stores.Following the acquisition, the firm initially experienced growth, expanding into new categories such as bridal wear, opening stores in key locations, returning to profitability and moving its flagship store and headquarters to Bond Street in London.  However it looks like its success was shortlived.LK Bennett, has 9 stores in the UK and employs 500 people.  The company are struggling financially, and looking to close if no new funding can be found.Problems on the High Street have been well documented recently with high rents and rates, uncertainty, and increases in minimum wages.The Duchess of Cambridge has been a big fan of the brand and so to have been many middle class affluent shoppers.  Ms Bennett was described as the "queen of the kitten heel"  However this time it looks likely to be gone forever on the High Street.

Read
LK Bennett in Administration Move

Arnold Laver In Administration Threat

in A guide for redundant employees in administration or insolvency situations Retail What Does Going Into Administration Mean?

National Timber Group England Files Notice of Intention to Appoint Administrators National Timber Group England, one of the UK’s largest timber suppliers, has filed a notice of intention to appoint administrators, putting more than 1,000 jobs at risk as the business seeks urgent restructuring and rescue options. The Sheffield-headquartered division, based on Bramall Lane, forms part of National Timber Group Midco, which has also submitted a notice of intention to appoint administrators, indicating financial challenges across the wider group. The business operates a nationwide network of timber distribution and processing sites, trading under several well-known sector brands including Arnold Laver, National Timber Systems, SV Timber and NORclad. Branches in Alfreton, Nottingham and Leicester are among those expected to be impacted.The Financials The group’s most recent accounts, covering the year ending 31 December 2023, reported: Turnover: more than £196 million Pre-tax losses: £6.3 million Headcount: over 1,000 employeesDespite its scale and longstanding market presence, rising costs and weakening demand across the construction sector have contributed to sustained trading pressures.A Century-Old Timber Business National Timber Group England traces its origins back to 1920, when it was founded in Sheffield by Arnold Laver. Over more than a century, it has grown into a major supplier to: joinery manufacturers housebuilders and contractors large-scale infrastructure projectsThe business is supported by extensive warehousing, processing and distribution capabilities, making it a critical part of the UK timber supply chain.What the Notice of Intention Means A Notice of Intention (NOI) to appoint administrators typically provides the company with a short period of protection from creditor action. During this time, options may be explored including: a refinancing or investment deal a sale of the business a restructuring process such as a Company Voluntary Arrangement (CVA) a trading administration if no buyer is found immediatelyThe goal is generally to preserve as much of the business and employment as possible.Sector Impact The construction materials sector has faced sustained challenges, including: reduced housebuilding activity inflationary pressures on imported timber higher financing and logistics costs contractor insolvencies affecting supply-chain payment cyclesNational Timber Group England’s situation is likely to have implications for timber availability and pricing, particularly for joinery and housing developers.Next Steps Administrators are expected to be formally appointed once the NOI period ends, unless a rescue option is secured beforehand. Suppliers, customers and employees are awaiting further updates as the restructuring process progresses.

Read
Arnold Laver In Administration Threat

PetroFac in Administration Threat

in A guide for redundant employees in administration or insolvency situations Retail

It has been reported that Petrofac, the oil company, has filed an intention to appoint administrators at the court today.  Teneo have been lined up to try and rescue the company, the move puts 2000 jobs at risk.​In a statement to the stock exchange early Monday, the company said it had applied to the High Court of England and Wales to appoint administrators to its ultimate holding company.“This action is a targeted administration of the holding company only, while the group’s operations will continue to trade,” it said.It appears that the UK operations of Petrofac are financially viable but the problems stem from its Abu Dhabi Operations where there has been a huge financial mess.A rescue deal collapsed last week when a major Dutch customer pulled out of a multibillion contract for wind farms and off shore drilling platformsA spokesperson for the Department for Energy Security and Net Zero said: “The UK arm of Petrofac has not entered administration and is continuing to operate as normal, as an in-demand business with a highly skilled workforce and many successful contracts.“Petrofac’s administration is a product of longstanding issues in their global business. The Government will continue to work with the UK company as it focuses on its long-term future. Ministers are working across all parts of government led by DESNZ in support of this.”The firm, which has UK offices in Aberdeen, London, Woking and Greater Yarmouth, said further information on the administration process would be provided in due course.Given the strong performance of the UK arm of the business it is likely that Petrofac UK will be sold to another operator.

Read
PetroFac in Administration Threat

Sheffield Wednesday To Go Into Administration

in A guide for redundant employees in administration or insolvency situations Retail What Does Going Into Administration Mean?

Sheffield Wednesday is to go into administration according to reports.  ​A notice was filed with the Insolvency and Companies Court at the High Court on Friday morning and Julian Pitts, Kris Wigfield and Paul Stanley of Begbies Traynor have been appointed joint-administrators. Staff have been briefed, while administrators also held a meeting with players.The Owls are one of the oldest clubs in the world, having been founded in 1867.  This follows the winding up petition that was served on the club last week by HMRC.  HMRC are owed £1m.The administration will result in the club being deducted 12 points and almost certain relegation.The fans have been very angry with the clubs performance and have even boycotted home games.  It has also been reported that player's wages have not been paid on time.

Read
Sheffield Wednesday To Go Into Administration

Pizza Hut Goes Into Administration According To Reports

in A guide for redundant employees in administration or insolvency situations Retail

TheBusinessDesk.com has reported that Pizza Hut has gone into administration less than a year after a rescue plan.FTI has been appointed as administrators by DC London Pie Ltd, the business established to manage Pizza Hut UK following a pre-pack agreement. Six weeks after HMRC filed a winding-up petition against the company, the action was taken.Yum! III (UK) Limited, the applicant for today's filing, is a division of Yum! Brands, Inc., an American food outlet operator based in Louisville, Kentucky, which is in control of the company.Last year, 3,000 jobs were spared when Directional Capital, which controlled franchises in Sweden and Denmark, purchased the 139 restaurants in a pre-pack deal.Investor Pricoa Capital, which had supported a management buyout, was owed over £40 million when Pizza Hut UK's former owner, Heart with Smart Limited, went bust.Pizza Hut is to close 68 restaurants and 11 delivery sites with the loss of 1,210 jobs after falling into administration.However, Pizza Hut's global owner Yum! Brands has agreed to save 64 restaurants in the UK, preserving 1,276 jobs.​

Read
Pizza Hut Goes Into Administration According To Reports
PPe

PPE Medpro in Administration Move

in A guide for redundant employees in administration or insolvency situations Retail

PPE Medpro Limited, linked to Michelle Mone and Douglas Barrowman has filed a notice of intention to appoint administrators.  This follows the judgement by the High Court today that they must repay the government £122m for supplying non-compliant surgical gowns to the NHS.It should be noted that the intention to appoint administrators is a way of protecting the company from aggressive creditor actions, such as winding up petitions.  It gives the company protection for 10 days whilst it tries to rescue the business.  This might be additional finance or a sale.However, following the loss of the High Court battle many will ask can the government get its money back.  There may be legal appeals, so it may not be the end of the matter.  However, if the company does go into administration, which needs to be likely in order to be allowed to file the "intention" then it will be difficult to get money back.  The company only has assets of £666k having spent £4.2m on legal fees.The company will be run by the admistrators and most likely put into liquidation very quickly as it cannot trade.  The liquidators will then have to go through all the books and records and investigate the conduct of the directors etc.  If, and it is a very BIG if, the liquidators find wrongdoing on behalf of the directors then they may be able to claim against the personal wealth of the directors or ex-directors (not Mone or Barrowman as they were never directors).  The liquidators would have to PROVE that they were fraudulent and wilfully negligent in the handling of the business/contract.  There is or has been NO suggestion that this is the case.  The argument centred around the contract and what was agreed that should be supplied.People will be angry that the PPE was not fit (according to the NHS) but that does not mean that it was the directors fault and they should be held liable.  This is simply a breach of contract case.It is worth remembering the extraordinary circumstances in which PPE procurement took place. Many companies and individuals came forward in good faith, wanting to help meet urgent demand in the Pandemic. With the pace and pressure of the situation, it was almost inevitable that misunderstandings etc would happen​.Here is what Michelle Mone had to say about the case"Today’s judgment against PPE Medpro is shocking but all too predictable. It is nothing less than an Establishment win for the Government in a case that was too big for them to lose. According to the judgment, PPE Medpro won its original pleaded case, having spent 4.5 years and £4.4 million defending it. However, on the opening day of trial, the Government pivoted to an entirely new argument, one that had never been pleaded beforehand. They claimed there was a lack of original “source documentation” around sterilisation, even though seven fully accredited sterilisation plants supplied gowns to other Governments and suppliers worldwide throughout the pandemic, without an issue. This quantum leap of faith on the part of the judge gave the government an overall win.  To use a simple analogy,  if a car looks, feels, and drives like, say, a Range Rover, then unless you can show how the car is assembled by the manufacturer, it’s not a Range Rover! That’s essentially what the judgment states, which contradicts all the evidence presented in court during the month-long trial in June of this year.   I've attached the complete press release from my husband’s spokesperson for your review. It lays bare the injustice of this judgment and the Establishment cover-up behind it."​

Read
PPE Medpro in Administration Move
pay airlines logo

Play Airline Goes Into Administration

in A guide for redundant employees in administration or insolvency situations Retail

​The budget airline, Play, has gone into administration after cancelling all of its flights from Glasgow Airport.The airline is based in Iceland and has announced that it has "ceased operations"Play only started its flight schedule to Glasgow in 2023, and said they were "deeply sorry" to their customers.In a statement on its website, the airline wrote: “Fly PLAY hf. has ceased operations, and all flights have been cancelled…We kindly advise you to check flights with other airlines.“Some carriers may offer special ‘rescue fares’ considering the circumstances”.The airline continued: “We are deeply sorry for the disruption this causes and thank you for your understanding”.Under refunds and passenger rights, the airline has stated that customers who purchased a ticket with a credit card should contact the card issuer for refunds.Many travel insurance policies do not actually cover for airlines going into administration. However, some customers would be protected by their credit or debit cards. Also, those who had a flight with a codeshare partner can claim their cost back via that airline.For any customers who have booked a ticket as part of a package (including flights and accommodation) through a travel agency in the EEA, please contact the travel agent used for assistance.They added: “Some rights may also apply under EU Air Passenger regulations. In case of bankruptcy, claims should be directed to the appointed administrator.”Around 500 staff have lost their jobs.The airline had been in existence for about five years. It follows former Icelandic carriers Primera Air and Wow Air into aviation history.Travellers were able to fly direct to Keflavik to explore Iceland, or connect with Play's four US destinations: New York Stewart, Boston, Baltimore/Washington, Washington Dulles, or Toronto in Canada.

Read
Play Airline Goes Into Administration

Simmons Cocktail Bar Group Goes Into Administration

in A guide for redundant employees in administration or insolvency situations Retail

​Simmons, the London cocktail chain with 20 venues, has gone into administration after saying that it would close at least four sites as it struggled with increased costs and pressures facing customers. In a statement founder Nick Campbell said “As part of the process, we’ve taken the tough decision to exit four leases, allowing management to focus resources on our strongest performing venues,”. The bar group,has appointed advisory firm Kroll to oversee the administration, company filings show. In its latest audited accounts, the company posted a loss of £749,000 for the year to end March 2024, reversing a profit of just under £2m the previous year.The move adds Simmons to a growing number of hospitality groups that have failed or , entered administration or cut back operations as they face ballooning costs and depressed consumer demand. That has included sharp hikes to employers’ National Insurance Contributions introduced in April, as well as reduced relief on business rates.The British Beer and Pub Association (BBPA) has estimated that 378 pubs will close this year across England, Wales and Scotland – more than one per day on average – amounting to more than 5,600 job losses. Kate Nicholls, chair of UK Hospitality, told City AM who broke the story “Sadly the news of further closures and business failures is all too common at the moment.“Our last survey showed that half of London hospitality businesses are operating at or below break even – up from a third since the Budget. That’s because the costs of doing business – rent, rates, employment – are much higher in the Capital but we have yet to see footfall and visitor numbers recover to pre Covid levels. “Put simply the money coming through the front door is not enough to cover costs and as a result businesses are running out of road – they are being literally taxed out.”

Read
Simmons Cocktail Bar Group Goes Into Administration

River Island To Restructure To Avoid Going Bust – Stores To Close

in A guide for redundant employees in administration or insolvency situations Retail

Update11th AugustThe court has approved the restructuring plan and here is the list of stores to closeFull list of stores on closure list:Beckton Bangor Bloomfield Wrexham Edinburgh Princes Street Hereford Surrey Quays Didcot Sutton Coldfield Aylesbury Burton-Upon-Trent Northwich Taunton Workington Falkirk Cumbernauld Kirkcaldy Gloucester Hartlepool Brighton Lisburn Norwich Oxford Poole Kilmarnock Hanley Barnstaple Grimsby Leeds Birstall Park Rochdale Great Yarmouth St Helens Stockton On Tees PerthAccording to reports, River Island becomes the latest retailer to look at Restructuring Plan as a way to avoid going bust. Just after the Covid Pandemic it was considering a Company Voluntary Arrangement (CVA).A Restructuring Plan binds all creditors not just the unsecured ones.  It is similar to a Scheme of Arrangement and is governed by the Companies Act 2006.  Creditors will vote and the scheme has to be approved by the court.  In a restructuring plan dissenting voters can be forced to accept the plan under what is known as a cross-class cramdown.Hundreds of jobs may go and some 33 stores are likely to close.  If you are worried about redundancy then we have this guide pageNegotiations with landlords may see further stores close.  More soon. 

Read
River Island To Restructure To Avoid Going Bust – Stores To Close

Hobbycraft To Launch CVA to Close Stores And Negotiate With Landlords

in News Retail What is a CVA (Company Voluntary Arrangement)?

Update 19th MayThe CVA has been approved but all that has really happened is that the rents have been changed from quarterly in advance to monthly in arrears.  No wonder it was done ​quite quickly. According to information obtained by Sky News, Modella Capital, a private investment business that specialises in acquiring struggling retailers, including WH Smith, will propose a company voluntary arrangement (CVA) at Hobbycraft as early as Wednesday. It has been reported that it will be FRP Advisory that will propose the CVA.People close to the plan stated that nine of its shops would be closed with the loss of around 100 jobs, and that 18 more would remain open only if negotiations with landlords over rent cuts work out.According to the individuals, 1,800 staff will be protected as an additional 97 stores will not be impacted by the CVA.Hobbycraft ‎is the latest in a series of High Street names to look at trying to reduce the size of their store portfolios amid rising pressures from online and discount rivals, increased employment costs and a deteriorating outlook for consumer confidence.Expensive High Street stores can be cut back provided that the lease allows for early termination.  If not the only way out is to surrender the lease that can be very expensive or use a company voluntary arrangement (CVA).A CVA allows the retailer to determine its lease obligations which can greatly help the company's cash flow. For more information on why a CVA is a perfect mechanism for helping retailers, read our retailer rescue page  Why not read our case study where we rescued a multi-store retailer

Read
Hobbycraft To Launch CVA to Close Stores And Negotiate With Landlords