Original Factory Shop Enters Administration, 137 Stores and 1,180 Jobs at Risk
Original Factory Shop Enters Administration, 137 Stores at Risk

Original Factory Shop Enters Administration, 137 Stores and 1,180 Jobs at Risk

The Original Factory Shop, a well-known discount retailer, has fallen into administration, casting significant doubt over the future of its extensive network of 137 stores and the livelihoods of its 1,180 employees across the United Kingdom. This development marks a concerning moment for the British high street, which has been grappling with a series of closures and financial struggles in recent years.

Administrators Appointed to Assess Viability

On Wednesday, the company appointed administrators from Interpath Advisory, a leading firm specialising in insolvency and restructuring. The administrators have confirmed that, for the time being, all physical stores will continue to trade as normal. This move is intended to provide a breathing space while a thorough assessment is conducted to explore all possible avenues for rescuing the business and preserving as many jobs as possible.

Rick Harrison, Managing Director at Interpath and joint administrator, expressed the gravity of the situation. "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."

Root Causes of the Retailer's Demise

The administrators have pointed to a confluence of severe economic pressures that have eroded the retailer's financial stability. These include:

  • High cost inflation, which has squeezed profit margins.
  • Fragile consumer confidence, leading to reduced discretionary spending.
  • Rising labour costs, attributed to recent government policies.

These foundational issues were then critically exacerbated by significant operational problems linked to the company's third-party warehouse and logistics provider. This disruption further weakened sales, creating an unsustainable financial position that ultimately led to the administration process.

Immediate Impact on Operations

In a significant operational shift, the retailer's online sales platform has been shut down with immediate effect. However, administrators have assured customers that any online orders placed prior to Wednesday will be delivered as normal. The focus now is squarely on maintaining the physical store estate during this critical evaluation period.

Broader Context of Retail Distress

The plight of The Original Factory Shop is not an isolated incident. It filed its notice of intention to appoint administrators earlier this month, a move mirrored by the fashion accessories brand Claire's, which formally entered administration on Monday, putting its 1,355 UK employees at risk.

Both retailers share a common recent history. They underwent restructuring and were subsequently acquired last year by the investment firm Modella Capital. Modella has rapidly become a major player in the UK retail sector, having also purchased the WH Smith high street chain last year and taking control of the arts and crafts retailer Hobbycraft in 2024. The administration of two of its portfolio companies raises questions about the challenges facing the broader retail investment landscape.

Full List of Store Locations at Risk

The following is the complete list of The Original Factory Shop locations across the UK, all of which are now under threat due to the administration:

  1. Abergele, Wales
  2. Alnwick, Northumberland
  3. Annan, Dumfries and Galloway, Scotland
  4. Ashington, Northumberland
  5. Atherstone, Warwickshire
  6. Attleborough, Norfolk
  7. Ayr, Ayrshire, Scotland
  8. Ballycastle, County Antrim, Northern Ireland
  9. Bangor, Wales
  10. Barmouth, Wales
  11. Barton-upon-Humber, Lincolnshire
  12. Bathgate, West Lothian, Scotland
  13. Bexhill, East Sussex
  14. Biggin Hill, Greater London
  15. Bishops Cleeve, Gloucestershire
  16. Brandon, Suffolk
  17. Bridgnorth, Shropshire
  18. Bridport, Dorset
  19. Buckie, Banffshire, Scotland
  20. Bungay, Suffolk
  21. Cainscross, Gloucestershire
  22. Calne, Wiltshire
  23. Campbeltown, Argyll, Scotland
  24. Cardigan, Wales
  25. Carluke, Lanarkshire
  26. Carterton, Oxfordshire
  27. Castle Douglas, Scotland
  28. Cinderford, Gloucestershire
  29. Cleethorpes, Lincolnshire
  30. Clitheroe, Lancashire
  31. Congleton, Cheshire
  32. Corsham, Wiltshire
  33. Cowdenbeath, Fife, Scotland
  34. Cranleigh, Surrey
  35. Crewkerne, Somerset
  36. Cromer, Norfolk
  37. Crowborough, East Sussex
  38. Dalry, Ayrshire, Scotland
  39. Downham Market, Norfolk
  40. Dunbar, East Lothian, Scotland
  41. East Dereham, Norfolk
  42. Egremont, Cumbria
  43. Felixstowe, Suffolk
  44. Forfar, Angus, Scotland
  45. Fraserburgh, Aberdeenshire, Scotland
  46. Frodsham, Cheshire
  47. Galston, Ayrshire, Scotland
  48. Garforth, West Yorkshire
  49. Garstang, Lancashire
  50. Gillingham, Dorset
  51. Gorleston, Norfolk
  52. Haddington, East Lothian, Scotland
  53. Harleston, Norfolk
  54. Haslemere, Surrey
  55. Headcorn, Kent
  56. Heathfield, East Sussex
  57. Hereford, Herefordshire
  58. Holbeach, Lincolnshire
  59. Holsworthy, Devon
  60. Horncastle, Lincolnshire
  61. Hornsea, East Yorkshire
  62. Kelso, Roxburghshire, Scotland
  63. Kippax, West Yorkshire
  64. Kirkintilloch, Dunbartonshire, Scotland
  65. Lampeter, Wales
  66. Lanark, Lanarkshire
  67. Lancaster, Lancashire
  68. Langold, Nottinghamshire
  69. Leiston, Suffolk
  70. Leominster, Herefordshire
  71. Lutterworth, Leicestershire
  72. Lydney, Gloucestershire
  73. Mablethorpe, Lincolnshire
  74. Machynlleth, Wales
  75. Melksham, Wiltshire
  76. Melton Mowbray, Leicestershire
  77. Milngavie, Dunbartonshire, Scotland
  78. Minehead, Somerset
  79. Monifieth, Angus, Scotland
  80. Montrose, Angus, Scotland
  81. Nailsea, Somerset
  82. New Ollerton, Nottinghamshire
  83. Newhaven, East Sussex
  84. Newquay, Cornwall
  85. Northallerton, North Yorkshire
  86. Oban, Argyll, Scotland
  87. Oxted, Surrey
  88. Penrith, Cumbria
  89. Plympton, Devon
  90. Porth, Wales
  91. Porthmadog, Wales
  92. Portrush, County Antrim, Northern Ireland
  93. Prudhoe, Northumberland
  94. Pwllheli, Wales
  95. Redruth, Cornwall
  96. Ripon, North Yorkshire
  97. Romsey, Hampshire
  98. Ross-on-Wye, Herefordshire
  99. Rushden, Northamptonshire
  100. Rustington, West Sussex
  101. Saltash, Cornwall
  102. Saxmundham, Suffolk
  103. Seaton, Devon
  104. Sherborne, Dorset
  105. Shildon, County Durham
  106. Shotts, Lanarkshire
  107. Skegness, Lincolnshire
  108. Sleaford, Lincolnshire
  109. Snettisham, Norfolk
  110. South Molton, Devon
  111. Southam, Warwickshire
  112. Spilsby, Lincolnshire
  113. St Clears, Wales
  114. Stalham, Norfolk
  115. Stanley, County Durham
  116. Stewarton, Ayrshire, Scotland
  117. Stonehaven, Kincardineshire
  118. Stornoway, Isle of Lewis, Scotland
  119. Stranraer, Wigtownshire, Scotland
  120. Sturminster Newton, Dorset
  121. Tenterden, Kent
  122. Thurso, Caithness, Scotland
  123. Tiptree, Essex
  124. Todmorden, West Yorkshire
  125. Tranent, East Lothian, Scotland
  126. Troon, Ayrshire, Scotland
  127. Ulverston, Cumbria
  128. Warrenpoint, County Down, Northern Ireland
  129. Warwick, Warwickshire
  130. Watton, Norfolk
  131. Whitby, North Yorkshire
  132. Whittlesey, Cambridgeshire
  133. Wigton, Cumbria
  134. Withernsea, East Yorkshire
  135. Wokingham, Berkshire
  136. Wrentham, Suffolk
  137. Wymondham, Norfolk

The coming weeks will be crucial in determining whether a buyer can be found or a restructuring plan formulated to save this familiar presence on Britain's high streets.