The Original Factory Shop, a prominent discount retailer with a long-standing presence on British high streets, has officially entered administration, casting uncertainty over the future of more than 1,000 employees. Administrators from Interpath Advisory were appointed on January 28, 2026, to oversee the insolvency process while the business continues to trade.
Administrators Cite Challenging Economic Climate
In a statement, the administrators pointed to a combination of severe economic pressures that have severely impacted the retailer's viability. High inflation, increased labour costs driven by government regulations, and a significant decline in consumer confidence were highlighted as key factors contributing to the collapse. These difficult trading conditions have made it increasingly hard for the business to sustain operations.
Efforts to Secure a Future for the Business
Rick Harrison, managing director at Interpath and joint administrator, emphasised the company's historical significance, noting that The Original Factory Shop has long-been a cornerstone of local high streets up and down the country. He confirmed that all stores will remain open for the time being as administrators work closely with the dedicated team of employees to explore potential rescue options and operate the business as a going concern.
A History of Financial Struggles
This is not the first time the retailer has faced financial difficulties. The company, which was originally founded in 1969 as part of the Peter Black's retail network and initially sold soap from one of Black's factories, has a history of challenges. In 2018, it encountered significant trouble when 32 stores were earmarked for closure due to falling profits and the withdrawal of credit insurance.
More recently, Modella Capital acquired The Original Factory Shop in February 2025, at a time when the business was already known to be struggling. Earlier this month, a notice of intention to appoint administrators was filed, signalling the impending collapse. The retailer currently operates approximately 130 stores across the UK, all of which are now at risk as the administration process unfolds.
