The Original Factory Shop entered administration in January, with joint administrators Richard Harrison and James Clark of Interpath appointed on January 28, according to multiple reports. The retailer had 137 stores across the UK at the time, and the administration placed around 1,220 employees in jeopardy. Financially, the collapse is substantial, with the company owing more than £30 million to unsecured trade and expense creditors, as reported by multiple sources.
The total unsecured creditor balance at the date of appointment was £114 million, highlighting the scale of the retailer's financial distress. In March, a wave of store closures began, with the Melksham branch shutting on Sunday, March 22, and the Corsham branch closing four days earlier. Stores in Cromer, Gorleston, and Bungay closed on March 29, and locations in Snettisham and Garstang were set to close on March 30.
Ongoing closures include two more UK stores slated to shut on April 4, while remaining branches are offering discounts of up to 50% while stocks last as part of liquidation efforts. Owner Modella Capital explained the failure, stating that the company does not have a realistic chance of being profitable again. Modella Capital blamed a challenging climate on Britain's high streets for the financial troubles, citing factors like reduced foot traffic and economic pressures.
The online store of The Original Factory Shop has closed, according to multiple reports, cutting off another revenue stream for the struggling retailer. Key unknowns remain, including how many stores are still open after the reported closures, the timeline for shutting all remaining locations, and how many employees have been made redundant so far. Additionally, it is unclear if there are any potential buyers or rescue plans for the business, or what specific financial measures led to the £114 million unsecured creditor balance.