UK high street administration wave: The 5 retailers facing early 2026 setback

The UK high street has faced an early setback in the new year, with five major retailers already entering administration. Each company cited their respective collapses to rising business costs and cautious consumer spending.

It comes despite more positive projections for the year ahead by industry analysts. According to a report by Knight Frank, the retail sector was the best performing real estate asset class in 2025. The coming year is forecast to remain challenging macroeconomically, particularly as increased operational costs stemming from the government’s Autumn Budget impact finances.

CBRE predicts the market will remain fragmented, with non-prime locations continuing to struggle. Conversely, the scarcity of space in prime locations may push retailers to consider 'next tier' vacancies outside their usual targets.

The landscape has already been marred by the swift administrations of Quiz, Claire’s, The Original Factory Shop, Russell & Bromley, and LK Bennett, all of which have raised concerns over the uncertain future of their retail networks. Here is what you need to know.

LK Bennett

Womenswear brand LK Bennett entered administration in early January, becoming one of the first high-profile financial collapses of the year after failing to secure a last-minute rescue deal. At the time of its collapse, the brand operated nine standalone stores and 13 concessions across the UK and Ireland, significantly down from its peak of roughly 200 global locations.

Although US investment firm Gordon Brothers rescued the brand from administration, purchasing only its intellectual property and brand identity, the future of its retail locations, currently trading under administrators, remains uncertain as real estate was not included in the deal.

Speculation about store closures began to escalate when the Harrogate location announced a stock clearance sale. Such closures would put at risk 89 retail jobs. However, administrator Alvarez & Marsal stated to Drapers that it plans to continue trading the remaining stores and concession partners for a period of up to three months.

Russell & Bromley

Footwear chain Russell & Bromley was rescued from administration by British retail giant Next, which sought to secure the brand’s name and intellectual property. Next stated an intention to return the brand to its roots in premium products.

Next only snapped up three of the brand’s 36 stores and nine concessions, specifically its flagship sites in Chelsea, Mayfair, and the Bluewater Shopping Centre. The future of the remaining stores and the 440 employees remains uncertain. Administrators at Interpath have indicated they plan to keep these locations operational while exploring further options.

Media reports have suggested store closures may be imminent, with The Sun previously reporting the retailer had 14 weeks in total. Clearance sales have reportedly already begun at some sites, including in Richmond, Winchester, Brighton, Kildare Village, Bath, and Ireland’s Arnotts. Furthermore, reports indicate a first wave of redundancies has occurred, leaving 320 store staff still at risk.

Claire’s

Claire’s was only rescued from the clutches of administration towards the end of last year, yet despite working “intensively in an effort to save” the business, its saviour, Modella Capital, ultimately came to the conclusion that there was no “realistic possibility of trading profitably again”.

The company’s UK and Ireland arm officially collapsed at the end of January, putting at risk over 1,000 jobs. While administrators at Kroll said they intend to continue trading from the company’s roughly 156 stores, various local media have already reported closing down sales across the country.

Claire’s locations in Wrexham, Newcastle, Liverpool, Stockport, Basingstoke, Worcester, St Albans, and Bangor are among those bearing discounting signs. No final closure dates have yet been publicly confirmed.

The Original Factory Shop

Another Modella-owned retailer, The Original Factory Shop (TFOS), also appears to be on the verge of shuttering a slew of its stores. The company, which stocks everything from beauty brands to sportswear labels to gifting, was rescued around a year ago from a similar outcome, with administrators at Interpath stating that trading challenges have only since continued to weigh on the business, resulting in the latest filing.

Akin to Claire’s, no profitable future could be envisioned by Modella, despite any last-ditch rescue attempts. TFOS’ administration is said to be putting 1,180 jobs at risk, while 137 shops will remain operational as a review goes underway.

Closing down sales have been reported at its stores in Ayr, Troon, North Yorkshire, East Lothian, and Cowdenbeath, as well as at its three Northern Ireland stores.

According to Retail Week, TFOS owes suppliers around nine million pounds. The Grocer has reported that Interpath is talking to a bidder regarding 70 stores, with the potential to save staff.

Quiz

Womenswear retailer Quiz entered its second administration in a year last week, despite reporting improvements in performance midway through 2025. This time round, administrators at Interpath confirmed 109 redundancies among the company’s head office in Glasgow and its Lanarkshire distribution centre.

Quiz’s 40 stores and seven concessions across the UK and Ireland will continue to trade amid a review of the business, while its online store has already shuttered. Its concessions in New Look and Matalan are not part of the administration process.

Administrators are calling on any parties interested in acquiring stock, store operations or infrastructure to contact the firm with urgency.