The Original Factory Shop has recently appointed administrators, with Interpath Advisory taking on the role. This move has put at risk 1,180 jobs across 137 stores operated by the discount retailer. While the stores are currently open for business as usual, the online operations have been suspended for the time being.
Administrators highlighted that The Original Factory Shop has been struggling due to various factors such as high cost inflation, increased labor expenses, and reduced consumer spending. Compounding these issues are challenges related to its third-party warehouse and logistics provider. The company, established in 1969, was acquired by Modella Capital last year.
Rick Harrison, the managing director at Interpath and joint administrator, expressed regret over the situation, stating that despite being a longstanding presence in local communities, the business had to enter administration due to trading difficulties. He emphasized the commitment to working closely with the company’s employees to keep the stores operational while exploring potential solutions for the business.
