The Original Factory Shop has recently brought in administrators, with the discount retailer appointing administrators from Interpath Advisory. This move has put 137 stores and 1,180 jobs at risk. While the stores remain open for business as usual, the online operations have been halted.
According to administrators, The Original Factory Shop has been dealing with challenges such as high cost inflation, increased labor expenses, and reduced sales due to decreased consumer spending. Compounding these issues are problems related to its third-party warehouse and logistics provider. Established in 1969, The Original Factory Shop was acquired by investment firm Modella Capital last year.
Rick Harrison, the managing director at Interpath and joint administrator, expressed regret over the situation, stating that despite being a prominent presence on local high streets nationwide, the business had to enter administration due to trading difficulties. The administrators will be collaborating with the dedicated team of employees to keep all stores operational while exploring options for the future of the business.