The Original Factory Shop has recently brought in administrators, with the discount retailer enlisting the services of Interpath Advisory last week. This move has put 137 of its stores and 1,180 jobs in jeopardy. While the physical stores remain operational, the online platform has been closed down for the time being.
According to the administrators, The Original Factory Shop has been struggling due to increased costs, including high inflation rates, escalating labor expenses, and reduced spending by consumers. Compounding these challenges are issues related to its external warehouse and logistics partner. Established in 1969, The Original Factory Shop was acquired by Modella Capital, an investment firm, last year.
Rick Harrison, the managing director at Interpath and one of the joint administrators, expressed regret over the company’s situation, noting the long-standing presence of The Original Factory Shop in local communities. Despite the difficulties faced, efforts will be made to keep the stores operational while exploring options for the business in the upcoming weeks.