The Original Factory Shop and Claire’s have been put into administration.
It means 2,500 jobs are at risk as owner Modella Capital said tough trading conditions and low Christmas trading left both chains in a vulnerable position.
The Original Factory Shop has branches in Egremont, Ulverston and Penrith.
Claire’s three branches in Workington, Carlisle and Kendal closed last year as its US-based former owner struggled and was bought by Modella Capital.
The firm has owned The Original Factory Shop since early last year.
It said: “This has been a very tough decision. We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again.
“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,” Modella said.
