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The Original Factory Shop has fallen into administration, putting the future of the chain’s 137 stores and 1,180 staff at risk. The discount retailer, which sell products including clothing and homeware, appointed administrators from Interpath Advisory on Wednesday, January 28.
It will continue to trade from its stores across the UK as the insolvency experts assess options in a bid to keep it afloat.
However it has been reported that online operations have shut down, but all online sales made before Wednesday will be delivered as normal.
Administrators said The Original Factory Shop’s troubles stemmed from challenging trading conditions, linked to high cost inflation, fragile consumer confidence and rising labour costs caused by government policies. Sales further weakened thanks to problems linked to its third-party warehouse and logistics operator.
Meanwhile Claire’s also went into administration on Monday (January 26), having 1,355 employees in the UK and known for it’s fashion accessories. The future is uncertain for The Original Factory Shop’s 137 stores and 1,180 staff members, the discount retailer is know for it’s clothing and homeware products.
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.” The business filed its intention to appoint administrators earlier this month alongside fashion accessories brand Claire’s.
The two retailers had already undergone restructuring and were bought by investment firm Modella Capital last year. Modella has become a major force in the British retail industry, having bought the WH Smith high street chain last year and taking over arts and crafts retailer Hobbycraft in 2024.
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