A major high street discount retailer looks set to close in a local town as administrators have been called in.
The Original Factory Shop has fallen into administration, putting the future of the chain’s stores and staff at risk.
The chain’s Cardigan store has been running since May 2009 when it was opened by then Cardigan Mayor, Cllr. Mark Cole, in the old Woolworths building on the High Street. It has remained a staple in the town since that time.
The future of Cardigan’s Original Factory Shop looks at be at risk. (Image: Google Street View)
The discount retailer, which sells products including clothing, home and garden ware, toys and toiletries appointed administrators Rick Harrison and James Clark from Interpath Advisory last Wednesday, January 28.
Founded in 1969, The Original Factory Shop operates 137 stores across the UK and employs around 1,180 staff.
Interpath said:
“In common with other high street retailers, the company 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.”
The joint administrators said that they 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.
“The Original Factory Shop has long-been a cornerstone of local high streets up and down the country,” said Rick Harrison, managing director at Interpath and joint administrator.
“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.”
Although Interpath has said that all retail stores will remain open and operational while the joint administrators assess options for the business, The Original Factory Shop in Cardigan is advertising an up to 30 percent off closing down sale.
“Now’s the time to come and grab yourself a bargain while stocks last,” it posted on its Facebook page. When it’s gone, it’s gone.”
Cardigan’s Original Factory shop was once one of several in the area.
The Fishguard, Haverfordwest and Milford Haven shops all closed in 2024.
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