A major discount retailer has said it has entered administration in a move that puts the future of its 137 stores and 1,180 staff at risk.
The Original Factory Shop, which sell products including clothing and homeware, appointed administrators from Interpath Advisory on Wednesday (January 28).
Rick Harrison and James Clark from Interpath have now been appointed joint administrators to The Factory Shop Limited, trading as The Original Factory Shop.
It will continue to trade from its stores across the UK as the insolvency experts assess options in a bid to keep it afloat.
Administrators said The Original Factory Shop’s troubles have been driven by challenging trading conditions, linked to high cost inflation, fragile consumer confidence and rising labour costs caused by government policies.
Harrison, managing director at Interpath and joint administrator, said: “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.”
(Image: Getty)
The Original Factory Shop filed its intention to appoint administrators earlier this month alongside fashion accessories brand Claire’s.
The two retailers had already undergone restructuring and were bought by investment firm Modella Capital last year.
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