Which major UK retailers have recently faced administration or job cuts?

The Original Factory Shop and Claire's Accessories have entered administration, impacting thousands of jobs, while LK Bennett may see redundancies and Metro Bank has put 100 jobs at risk.

What are the main challenges facing the UK retail and hospitality sectors?

Retailers and hospitality firms are struggling with high cost inflation, fragile consumer confidence, rising employment costs, and significant increases in business rates.

How are rising business rates affecting companies like Travelodge?

Travelodge's business rates bill is projected to increase from £38 million to £50 million this year, contributing to broader concerns about the neglect of the hospitality sector.

Home / Business and Economy / High Street Jobs Vanish Amid Tax Plan Fury

High Street Jobs Vanish Amid Tax Plan Fury

29 Jan

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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.

High Street Jobs Vanish Amid Tax Plan Fury

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.