The Original Factory Shop has fallen into administration, with around 1,180 roles now under threat as the chain grapples with prolonged trading pressures.
The British discount retailer said it has been affected by high-cost inflation, fragile consumer confidence and government policies that have driven significant increases in employment costs.
Trading performance was also undermined by difficulties with a third-party warehouse and logistics provider, which had a marked impact on sales.
Rick Harrison and James Clark of Interpath are named joint administrators to The Factory Shop Limited, which operates under The Original Factory Shop brand.
Following their appointment, the administrators confirmed that all 137 stores will continue operating while options for the business are reviewed.
However, the retailer’s online shop has closed with immediate effect.
Earlier this month, the company lodged a notice with the High Court seeking the appointment of administrators.
The January filing came just six months after the business completed a restructuring programme that involved relocating its head office and distribution centre from Burnley to Bolton, alongside negotiating rent reductions at several sites.
Interpath managing director and joint administrator Rick Harrison 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.”
Founded in 1969, the retailer runs 137 outlets across the UK, selling a mix of branded and own-sourced ranges spanning clothing, homewares, beauty products, toys and seasonal merchandise.
The chain was acquired by Modella less than a year ago from Duke Street Capital.
Customer guidance released alongside the move states that goods purchased before 28 January 2026 may be exchanged for items of equal or lower value with proof of purchase, in line with existing store returns policies.
Items bought on or after that date will be sold as seen, with returns accepted only for faulty products and subject to approval by store managers.
Online orders placed before 28 January are expected to be fulfilled as normal, and customers’ statutory rights remain unchanged.
The administrators added that further updates for shoppers will be issued as the process progresses.
