Home / Business and Economy / High Street Jobs Vanish Amid Tax Plan Fury
High Street Jobs Vanish Amid Tax Plan Fury
29 Jan
Summary
- The Original Factory Shop fell into administration, affecting 1,180 jobs.
- Claire's Accessories also entered administration, risking over 1,000 jobs.
- Travelodge warns of a significant rise in its business rates bill.
The retail sector is experiencing a significant downturn, with several well-known companies announcing job cuts and administrations as of January 29, 2026. The Original Factory Shop became the latest casualty, entering administration with 137 stores and approximately 1,180 employees facing job uncertainty.
This follows similar distress for Claire's Accessories, which also fell into administration recently, putting over 1,000 jobs at risk. Fashion retailer LK Bennett's brand was acquired, suggesting a shift to an 'asset-light model' which could lead to redundancies for its 280 staff.
Beyond retail, the hospitality sector is also raising concerns. Travelodge's boss warned that the Government is neglecting the industry, projecting a rise in its business rates from £38 million to £50 million this year. Fast-food chain Tortilla is considering price hikes due to recent budget policies.
Metro Bank also informed 100 employees that their jobs are at risk. These developments add to recent shop closures from Poundland, River Island, and Russell & Bromley, highlighting widespread economic challenges. Retailers are grappling with rising wages and business rates, with further increases anticipated in April and beyond, potentially exacerbating the situation.
