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Business adviser, Interpath, has been appointed administrator of Burnley-based discount retailer, The Original Factory Shop (TOFS), raising fears for almost 1,200 jobs.
Questions over the future of the struggling chain were raised earlier this month following publication of a Notice of Intention to Appoint and Administrator.
This afternoon (January 28), TOFS owner, London-based investment group Modella, confirmed the appointment of Interpath’s Rick Harrison and James Clark as joint administrators.
Founded in 1969, The Original Factory Shop is a discount retailer selling a wide range of branded and own-sourced products, including clothing, homewares, beauty items, toys, and seasonal goods. The company operates 137 stores across the UK, employing circa 1,180 staff.
In common with other high street retailers, TOFS had experienced challenging trading conditions, driven by high cost inflation, fragile consumer confidence and Government policies which have led to significant increases in employment costs.
This was exacerbated by issues with the company’s third-party warehouse and logistics operator, which significantly impacted sales.
Following their appointment, the joint administrators will continue to trade all 137 stores as a going concern while they assess options for the business.
The company’s online store, however, will close.
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.
“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.”
All retail stores will remain open and operational while the joint administrators assess options for the business.
All goods purchased prior to today (January 28) can be exchanged for goods to the same value or less when accompanied by proof of purchase in line with the stores’ returns policy.
All goods purchased on or after January 2028 will be ‘sold as seen’ and returns can only be accepted on the grounds that the goods are faulty. Also, all refunds require the authorisation of the store manager.
The company’s online store will close with immediate effect.
Orders placed online before January 28 will be delivered as usual.
This does not affect the customer’s statutory rights.
Modella had rescued TOFS in February last year after acquiring it from previous owner, private equity firm Duke Street.
However, within months Modella had put the business through a CVA (Company Voluntary Arrangement), closing stores and cutting jobs.
TOFS is the second major retailer to collapse this week.
Accessories chain Claire’s – also owned by Modella – appointed Kroll as administrator to its UK and Irish operations on Monday, putting about 1,300 jobs at risk.
The retail sector is suffering from a combination of a cost-of-living crisis, and government policy, such as increases to the minimum wage and employers’ National Insurance.
