The Original Factory Shop has recently appointed administrators, adding to the list of retailers facing financial challenges. The discount retailer sought assistance from Interpath Advisory, potentially putting 137 stores and 1,180 jobs at risk. Despite the administration process, the stores are operating normally while administrators explore possible solutions for the business, although the online operations have been ceased.
Administrators mentioned that The Original Factory Shop has been dealing with increased cost inflation, higher labor expenses, and reduced sales due to decreased consumer spending. Additionally, complications with its third-party warehouse and logistics provider have further exacerbated the company’s issues. Established in 1969, The Original Factory Shop was acquired by Modella Capital, an investment firm, last year.
Rick Harrison, the managing director at Interpath and joint administrator, expressed regret over the challenges impacting the business, leading to the administration decision. He emphasized the importance of working closely with the dedicated employees to maintain store operations while evaluating future options for the business.
For the latest money news and exclusive deals, you can join our Money WhatsApp group or sign up for Mirror’s Money newsletter to receive advice and shopping discounts directly to your inbox.