Three Lancashire branches of The Original Factory Shop (TOFS) are at risk of closure as the company calls in administrators following a tough year of trading.
The stores face an uncertain future after the discount retailer appointed administrators on Wednesday, January 28.
Administrators from Interpath Advisory have stated all 137 stores across the UK will continue to trade while they explore rescue options, including the remaining three in Lancashire, in Clitheroe, Lancaster and Garstang.
More than 1,100 jobs at The Original Factory Shop branches, which sell products including clothing and homeware, are at risk.
Rick Harrison, managing director at Interpath Advisory 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 company, founded in 1969, recently relocated its registered headquarters to Bolton after previously being based in Burnley since 2007.
Online operations have been shut down. However, administrators have said that all online orders placed before January 28 will still be fulfilled.
Interpath Advisory said that the company’s financial difficulties were driven by challenging trading conditions, linked to high cost inflation, fragile consumer confidence and rising labour costs caused by government policies.
These issues were made worse by challenges with its third-party warehouse and logistics operator.
The retailer stocks a wide range of major brands, including Nike, Adidas, Calvin Klein, L’Oréal, Clinique, Regatta, Lego, Silentnight, and Coca-Cola.
The company closed its Great Harwood store on February 28 last year.
The news comes amid a wider downturn for the retail and hospitality sectors, amid difficult new year trading.
Although it continues to trade for now, the long-term outlook for its remaining stores and staff remains uncertain as administrators work to find a buyer or restructure the business.
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