The Original Factory Shop, a discount retailer with 137 stores across the UK, has entered administration, putting 1,180 jobs at risk. The company appointed administrators from Interpath Advisory last week.
Stores continue to trade as normal while administrators assess options, but the company's online operations have been shut down. The retailer cited high cost inflation, rising labour costs, and lower consumer spending as factors behind its difficulties, compounded by issues with a third-party warehouse and logistics operator.
Founded in 1969, the chain was acquired by investment firm Modella Capital last year. Rick Harrison, managing director at Interpath and joint administrator, said: “The Original Factory Shop has long-been a cornerstone of local high streets up and down the country. Unfortunately, however, trading challenges have impacted the business such that the company had to be placed into administration.”
Administrators are working with staff to operate all stores as a going concern while evaluating options for the business. The retail sector continues to face pressure from rising costs and changing consumer habits.
