The Original Factory Shop calls in administrators, putting 1,200 jobs at risk
AI Summary
The Original Factory Shop, a 137-store discount retailer, has entered administration, putting 1,200 jobs at risk. The decision, made by private equity firm Modella Capital less than a year after acquiring the chain, is attributed to weak consumer confidence, adverse government policies, cost inflation, and issues with a third-party warehouse. Administrators from Interpath will continue trading while assessing options for the business. Modella also owns Claire's, which entered administration earlier in the week, putting a further 1,350 jobs at risk. The company cites challenging conditions on UK high streets, including reduced footfall and increased costs, as contributing factors to the financial difficulties. The Original Factory Shop's website has stopped taking new orders, but existing orders will be fulfilled.
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