Original Factory Shop Enters Administration, 137 Stores and 1,180 Jobs at Risk
The Original Factory Shop, a well-known discount retailer, has fallen into administration, casting significant doubt over the future of its extensive network of 137 stores and the livelihoods of its 1,180 employees across the United Kingdom. This development marks a concerning moment for the British high street, which has been grappling with a series of closures and financial struggles in recent years.
Administrators Appointed to Assess Viability
On Wednesday, the company appointed administrators from Interpath Advisory, a leading firm specialising in insolvency and restructuring. The administrators have confirmed that, for the time being, all physical stores will continue to trade as normal. This move is intended to provide a breathing space while a thorough assessment is conducted to explore all possible avenues for rescuing the business and preserving as many jobs as possible.
Rick Harrison, Managing Director at Interpath and joint administrator, expressed the gravity of the situation. "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. Over the coming weeks, we will be working closely with TOFS dedicated team of employees as we endeavour to operate all stores as a going concern while we assess options for the business."
Root Causes of the Retailer's Demise
The administrators have pointed to a confluence of severe economic pressures that have eroded the retailer's financial stability. These include:
- High cost inflation, which has squeezed profit margins.
- Fragile consumer confidence, leading to reduced discretionary spending.
- Rising labour costs, attributed to recent government policies.
These foundational issues were then critically exacerbated by significant operational problems linked to the company's third-party warehouse and logistics provider. This disruption further weakened sales, creating an unsustainable financial position that ultimately led to the administration process.
Immediate Impact on Operations
In a significant operational shift, the retailer's online sales platform has been shut down with immediate effect. However, administrators have assured customers that any online orders placed prior to Wednesday will be delivered as normal. The focus now is squarely on maintaining the physical store estate during this critical evaluation period.
Broader Context of Retail Distress
The plight of The Original Factory Shop is not an isolated incident. It filed its notice of intention to appoint administrators earlier this month, a move mirrored by the fashion accessories brand Claire's, which formally entered administration on Monday, putting its 1,355 UK employees at risk.
Both retailers share a common recent history. They underwent restructuring and were subsequently acquired last year by the investment firm Modella Capital. Modella has rapidly become a major player in the UK retail sector, having also purchased the WH Smith high street chain last year and taking control of the arts and crafts retailer Hobbycraft in 2024. The administration of two of its portfolio companies raises questions about the challenges facing the broader retail investment landscape.
Full List of Store Locations at Risk
The following is the complete list of The Original Factory Shop locations across the UK, all of which are now under threat due to the administration:
- Abergele, Wales
- Alnwick, Northumberland
- Annan, Dumfries and Galloway, Scotland
- Ashington, Northumberland
- Atherstone, Warwickshire
- Attleborough, Norfolk
- Ayr, Ayrshire, Scotland
- Ballycastle, County Antrim, Northern Ireland
- Bangor, Wales
- Barmouth, Wales
- Barton-upon-Humber, Lincolnshire
- Bathgate, West Lothian, Scotland
- Bexhill, East Sussex
- Biggin Hill, Greater London
- Bishops Cleeve, Gloucestershire
- Brandon, Suffolk
- Bridgnorth, Shropshire
- Bridport, Dorset
- Buckie, Banffshire, Scotland
- Bungay, Suffolk
- Cainscross, Gloucestershire
- Calne, Wiltshire
- Campbeltown, Argyll, Scotland
- Cardigan, Wales
- Carluke, Lanarkshire
- Carterton, Oxfordshire
- Castle Douglas, Scotland
- Cinderford, Gloucestershire
- Cleethorpes, Lincolnshire
- Clitheroe, Lancashire
- Congleton, Cheshire
- Corsham, Wiltshire
- Cowdenbeath, Fife, Scotland
- Cranleigh, Surrey
- Crewkerne, Somerset
- Cromer, Norfolk
- Crowborough, East Sussex
- Dalry, Ayrshire, Scotland
- Downham Market, Norfolk
- Dunbar, East Lothian, Scotland
- East Dereham, Norfolk
- Egremont, Cumbria
- Felixstowe, Suffolk
- Forfar, Angus, Scotland
- Fraserburgh, Aberdeenshire, Scotland
- Frodsham, Cheshire
- Galston, Ayrshire, Scotland
- Garforth, West Yorkshire
- Garstang, Lancashire
- Gillingham, Dorset
- Gorleston, Norfolk
- Haddington, East Lothian, Scotland
- Harleston, Norfolk
- Haslemere, Surrey
- Headcorn, Kent
- Heathfield, East Sussex
- Hereford, Herefordshire
- Holbeach, Lincolnshire
- Holsworthy, Devon
- Horncastle, Lincolnshire
- Hornsea, East Yorkshire
- Kelso, Roxburghshire, Scotland
- Kippax, West Yorkshire
- Kirkintilloch, Dunbartonshire, Scotland
- Lampeter, Wales
- Lanark, Lanarkshire
- Lancaster, Lancashire
- Langold, Nottinghamshire
- Leiston, Suffolk
- Leominster, Herefordshire
- Lutterworth, Leicestershire
- Lydney, Gloucestershire
- Mablethorpe, Lincolnshire
- Machynlleth, Wales
- Melksham, Wiltshire
- Melton Mowbray, Leicestershire
- Milngavie, Dunbartonshire, Scotland
- Minehead, Somerset
- Monifieth, Angus, Scotland
- Montrose, Angus, Scotland
- Nailsea, Somerset
- New Ollerton, Nottinghamshire
- Newhaven, East Sussex
- Newquay, Cornwall
- Northallerton, North Yorkshire
- Oban, Argyll, Scotland
- Oxted, Surrey
- Penrith, Cumbria
- Plympton, Devon
- Porth, Wales
- Porthmadog, Wales
- Portrush, County Antrim, Northern Ireland
- Prudhoe, Northumberland
- Pwllheli, Wales
- Redruth, Cornwall
- Ripon, North Yorkshire
- Romsey, Hampshire
- Ross-on-Wye, Herefordshire
- Rushden, Northamptonshire
- Rustington, West Sussex
- Saltash, Cornwall
- Saxmundham, Suffolk
- Seaton, Devon
- Sherborne, Dorset
- Shildon, County Durham
- Shotts, Lanarkshire
- Skegness, Lincolnshire
- Sleaford, Lincolnshire
- Snettisham, Norfolk
- South Molton, Devon
- Southam, Warwickshire
- Spilsby, Lincolnshire
- St Clears, Wales
- Stalham, Norfolk
- Stanley, County Durham
- Stewarton, Ayrshire, Scotland
- Stonehaven, Kincardineshire
- Stornoway, Isle of Lewis, Scotland
- Stranraer, Wigtownshire, Scotland
- Sturminster Newton, Dorset
- Tenterden, Kent
- Thurso, Caithness, Scotland
- Tiptree, Essex
- Todmorden, West Yorkshire
- Tranent, East Lothian, Scotland
- Troon, Ayrshire, Scotland
- Ulverston, Cumbria
- Warrenpoint, County Down, Northern Ireland
- Warwick, Warwickshire
- Watton, Norfolk
- Whitby, North Yorkshire
- Whittlesey, Cambridgeshire
- Wigton, Cumbria
- Withernsea, East Yorkshire
- Wokingham, Berkshire
- Wrentham, Suffolk
- Wymondham, Norfolk
The coming weeks will be crucial in determining whether a buyer can be found or a restructuring plan formulated to save this familiar presence on Britain's high streets.