The Original Factory Shop has fallen into administration, putting the future of the chain’s 137 stores and 1,180 staff at risk.
The discount retailer, which sells products including clothing and homeware, appointed administrators from Interpath Advisory on Wednesday.
It will continue to trade from its stores across the UK as the insolvency experts assess options in a bid to keep it afloat.
But it has now shut down its online operations, although all online sales made before Wednesday will be delivered as normal.
Administrators said The Original Factory Shop’s troubles have been driven by challenging trading conditions, linked to high cost inflation, fragile consumer confidence and rising labour costs caused by government policies.
Problems were then exacerbated by issues linked to its third-party warehouse and logistics operator, weakening sales further.
Rick Harrison, managing director at Interpath and joint administrator, 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.
“Over the coming weeks, we will be working closely with TOFS dedicated team of employees as we endeavour to operate all stores as a going concern while we assess options for the business.”
The business filed its intention to appoint administrators earlier this month alongside fashion accessories brand Claire’s.
Claire’s, which has 1,355 employees in the UK, entered administration on Monday.
The two retailers had already undergone restructuring and were bought by investment firm Modella Capital last year.
Modella has become a significant force in the British retail industry, having bought the WH Smith high street chain last year and taking over arts and crafts retailer Hobbycraft in 2024.
