The Original Factory Shop on the point of collapse placing 1,200 jobs in danger

The Original Factory Shop is understood to be on the brink of falling into administration this week. 

Around 1,200 UK-based staff could be at risk of losing their jobs if administrators are called in, Sky News has reported. 

Modella Capital, which owns The Original Factory Shop, is expected to appoint Interpath to manage its insolvency as soon as Wednesday afternoon. 

The Original Factory Shop has 130 shops across Britain and currently has steep discounts available across its online store. 

According to Sky News, Interpath would look to continue to trade the retailer’s estate during the administration process. 

Modella filed a notice of intention to appoint administrators for The Original Factory Shop earlier this month. 

Tough times: The Original Factory Shop is understood to be on the brink of falling into administration this week

The private equity firm has been holding talks with third parties about a sale of the business during the last few weeks. Industry insiders remain doubtful that a purchaser for any significant portion of the retailer will crop up.

The chain was already teetering on the brink of failure when Modella Capital acquired it last year. 

A toxic cocktail of government policies, landlords’ demands to take back many of The Original Factory Shops’ better sites and a poorly handled transition to a new logistics provider have impacted the retailer’s financial performance.