The Original Factory Shop entered administration in January, with joint administrators Richard Harrison and James Clark of Interpath appointed to The Factory Shop Ltd, which trades as The Original Factory Shop, on January 28. At the time of administration, the company operated 137 stores across the UK, and the move put approximately 1,220 employees at risk. The online store closed, but physical shops continued to trade as a going concern while administrators explored options for the business.
The company faced significant financial liabilities, owing more than £30 million to unsecured trade and expense creditors. According to multiple reports, the total unsecured creditor balance at the date of appointment was £114 million, which included about £31 million owed to trade and expense creditors. Recent store closures have accelerated, with the Melksham branch closing on Sunday, March 22.
The Corsham branch closed four days before the Melksham branch. Stores in Cromer, Gorleston, and Bungay closed on March 29. Stores in Snettisham and Garstang were set to close on March 30, and the Garstang store's last day was Sunday, March 29.
Two more UK stores are slated to shut on April 4, though the specific locations have not been disclosed. Owner Modella Capital said the company does not have a realistic chance of being profitable again. According to Modella Capital, the financial troubles were blamed on a challenging climate on Britain's high streets.
Remaining branches are offering prices up to 50% off while stocks last. The company was established in 1969, and the exact number of stores that have closed so far has not been confirmed. Administrators' plans for the remaining stores and the business as a whole, including the timeline for a complete wind-down, remain unclear, as does the number of employees made redundant to date.
The administration process has led to widespread uncertainty among staff and creditors, with ongoing sales aimed at liquidating inventory. The historical context of the company, founded over five decades ago, underscores the significant shift in retail dynamics contributing to its current struggles.