There are fresh concerns over the future of two longstanding shops in Ripon and Harrogate after it was announced yesterday (January 5) they were being put into administration.

Claire’s on Cambridge Street in Harrogate and The Original Factory Shop on Fishergate in Ripon are owned by US private equity form Modella Capital.

Modella said in a statement yesterday it had put the two businesses into administration, a move it said would give them breathing space to find a buyer.

Claire's 154 stores employ 1,355 staff and The Original Factory shop has 1,220 staff at 140 stores.

Staff at both local stores have faced recent uncertainty.

Modella bought Claire’s in September last year and closed 145 of its stores after it previously entered administration.

The US firm has owned The Original Factory Shop since early last year. The Stray Ferret reported in November that a ‘To Let’ sign had appeared on its unit in Ripon, which has been part of the city since 1985.

Yesterday's statement blamed "alarming" Christmas sales on the back of difficult trading conditions for leaving both businesses in a "vulnerable" position.

Modella, which bought WH Smith and rebranded it as TGJones, said: "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.”

Michael Lynch, a partner at city law firm DMH Stallard and insolvency and restructuring specialist, told the Stray Ferret administration “may yet present an additional lifeline” for Claire’s and The Original Factory Shop.

He added:

"Prospective purchasers have the potential to buy an already streamlined business - without liabilities - saving jobs, and continuing a well-established business. Administration does not necessarily mean the death-knell that is often considered the case with informal insolvency."