Summary
The Original Factory Shop, a discount retailer in the UK, has gone into administration, which may affect 1,180 jobs. The company's stores will stay open as normal for now, although its online store is shutting down immediately. Modella Capital, which owns the store, started the insolvency process due to financial challenges.
Key Facts
- The Original Factory Shop has entered administration, impacting 1,180 jobs.
- The retailer has 137 stores that will continue to operate for now.
- The company's online store is closing immediately.
- Rising costs, fewer customers, and government policies have strained the business.
- The Original Factory Shop was bought by Modella Capital less than a year ago.
- Modella Capital also owns TG Jones and Hobbycraft.
- There were issues with the retailer's third-party warehouse and logistics partner.
- Higher National Insurance and minimum wage increases have raised costs for the business.
