1,200 Jobs at Risk as The Original Factory Shop Enters Administration
Approximately 1,200 jobs are under threat as The Original Factory Shop prepares to call in administrators this week. The discount retailer, which operates around 130 stores across the UK, is expected to formally appoint insolvency practitioners from Interpath as soon as Wednesday afternoon.
Imminent Collapse of a High Street Staple
Sky News has learned that The Original Factory Shop (TOFS), a chain that first opened in the late 1960s, is on the brink of collapse. This development comes despite the business being acquired by investment firm Modella Capital last year, when it was already facing severe financial difficulties.
Sources indicate that Interpath is likely to continue trading the estate during the administration process. However, retail experts express significant scepticism about finding a buyer for any meaningful part of the business.
Broader Retail Crisis and Modella's Portfolio
If confirmed, this administration would mark the second major retail collapse this week involving Modella Capital. On Monday, the accessories chain Claire's—also owned by Modella—appointed Kroll as administrator for its UK and Irish operations, threatening around 1,300 jobs.
The financial struggles of TOFS are attributed to a combination of factors, including government policy impacts, landlords reclaiming many of its prime locations, and a poorly managed transition to a new logistics provider.
Modella Capital's portfolio includes other notable retail names, such as WH Smith's historic high street estate, now rebranded as TG Jones, and the craft retailer Hobbycraft.
Industry-Wide Challenges Persist
The retail sector continues to face significant headwinds, with chains like Poundland having closed numerous stores recently. This latest potential administration underscores the ongoing pressures on traditional brick-and-mortar retailers in a challenging economic climate.
Modella Capital has been contacted for comment regarding the situation, while Interpath has declined to provide any statement at this time.
