The Original Factory Shop, a prominent discount retailer with over 130 stores across the United Kingdom, has formally entered administration, casting significant doubt over the future of its entire network and placing approximately 1,180 jobs in immediate jeopardy. The company, known for offering affordable clothing and homeware, appointed insolvency specialists from Interpath Advisory on January 28, 2026, marking a critical moment for the British high street.
Immediate Impact and Ongoing Operations
While administrators have confirmed that all physical stores will continue trading for the time being, the company's online operations have been suspended indefinitely. This move allows Interpath Advisory to evaluate potential rescue options for the business as a going concern. Customers who made purchases via the website prior to Wednesday are assured that their orders will be fulfilled as normal, providing some temporary reassurance.
Causes of the Collapse
According to statements from the appointed administrators, The Original Factory Shop's financial troubles stem from a perfect storm of challenging economic factors. Persistently high cost inflation, weakened consumer confidence, and rising labour costs linked to recent government policies have severely impacted profitability. These underlying issues were then exacerbated by significant operational problems with a third-party warehouse and logistics provider, leading to a further sharp decline in sales performance.
Rick Harrison, Managing Director at Interpath Advisory and joint administrator, commented on the situation: "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."
Administrator's Strategy and Employee Focus
Harrison further outlined the immediate plan, stating: "Over the coming weeks, we will be working closely with TOFS's dedicated team of employees as we endeavour to operate all stores as a going concern while we assess options for the business." This indicates a short-term commitment to maintaining store operations and preserving jobs while a longer-term solution is sought.
Broader Retail Sector Context
This administration follows a troubling pattern in the UK retail sector. The company had filed its notice to appoint administrators earlier in January, a move mirrored by fashion accessories chain Claire's, which entered administration on January 26, putting 1,355 UK jobs at risk. Both retailers share a common recent history; they were previously restructured and subsequently acquired by the investment firm Modella Capital last year.
Modella Capital has rapidly become a significant force in British retail, having also purchased the WH Smith high street chain last year and acquired the arts and crafts retailer Hobbycraft in 2024. The simultaneous struggles of two of its portfolio companies raise questions about the pressures facing the broader value retail segment.
Full List of Stores at Risk
The administration places the future of all 137 Original Factory Shop locations in doubt. The full list of towns and cities with stores now under threat includes:
- Abergele, Conwy
- Alnwick, Northumberland
- Annan, Dumfries and Galloway
- Ashington, Northumberland
- Atherstone, Warwickshire
- Attleborough, Norfolk
- Ayr, South Ayrshire
- Ballycastle, Moyle
- Bangor, North Wales
- Barmouth, Gwynedd
- Barton on Humber, North Lincolnshire
- Bathgate, West Lothian
- Bexhill On Sea, East Sussex
- Biggin Hill, Kent
- Bishops Cleeve, Gloucestershire
- Blandford Forum, Dorset
- Brandon, Suffolk
- Bridgnorth, Shropshire
- Bridport, Dorset
- Buckie, Moray
- Bungay, Suffolk
- Cainscross, Gloucestershire
- Calne, Wiltshire
- Campbeltown, Argyll
- Cardigan, Dyfed
- Carluke, South Lanarkshire
- Carterton, Oxfordshire
- Castle Douglas, Dumfries and Galloway
- Cinderford, Gloucestershire
- Cleethorpes, North East Lincolnshire
- Clitheroe, Lancashire
- Congleton, Cheshire
- Corsham, Wiltshire
- Cowdenbeath, Fife
- Cranleigh, Surrey
- Crewkerne, Somerset
- Cromer, Norfolk
- Crowborough, East Sussex
- Dalry, Ayrshire
- Dereham, Norfolk
- Downham Market, Norfolk
- Dunbar, East Lothian
- Egremont, Cumbria
- Felixstowe, Suffolk
- Forfar, Dundee
- Fraserburgh, Aberdeenshire
- Frodsham, Cheshire
- Galston, Ayrshire
- Garforth, West Yorkshire
- Garstang, Preston
- Gillingham, Dorset
- Gorleston on Sea, Norfolk
- Haddington, East Lothian
- Harleston, Norfolk
- Haslemere, Surrey
- Headcorn, Kent
- Heathfield, East Sussex
- Hereford, Herefordshire
- Holbeach, Lincolnshire
- Holsworthy, Devon
- Honiton, Devon
- Horncastle, Lincolnshire
- Hornsea, Yorkshire
- Kelso, Scottish Borders
- Kippax, West Yorkshire (inside Co Op)
- Kirkintilloch, Glasgow
- Lampeter, Ceredigion
- Lanark, South Lanarkshire
- Lancaster, Lancashire
- Langold, Worksop
- Leiston, Suffolk
- Leominster, Herefordshire
- Lutterworth, Leicestershire
- Lydney, Gloucestershire
- Mablethorpe, Lincolnshire
- Machynlleth, Gwynedd
- Melksham, Wiltshire
- Melton Mowbray, Leicestershire
- Milngavie, East Dunbartonshire
- Minehead, Somerset
- Monifieth, Angus
- Montrose, Angus
- Nailsea, North Somerset
- New Ollerton, Newark
- Newhaven, East Sussex
- Newquay, Cornwall
- Northallerton, North Yorkshire
- Oban, Argyllshire
- Oxted, Surrey
- Penrith, Cumbria
- Plympton, Plymouth (inside Co Op)
- Porth, Mid Glamorgan
- Porthmadog, Gwynedd
- Portrush, County Antrim
- Prudhoe, Northumberland (inside Co Op)
- Pwllheli, Gwynedd
- Redruth, Cornwall
- Ripon, North Yorkshire
- Romsey, Hampshire
- Ross on Wye, Herefordshire
- Rushden, Northamptonshire
- Rustington, West Sussex
- Saltash, Cornwall
- Saxmundham, Suffolk
- Seaton, Devon
- Sherborne, Dorset
- Shildon, County Durham
- Shotts, North Lanarkshire (inside Co Op)
- Skegness, Lincolnshire
- Sleaford, Lincolnshire
- Snettisham, Norfolk
- South Molton, Devon
- Southam, Warwickshire
- Spilsby, Lincolnshire
- St Clears, Carmarthenshire
- Stalham, Norfolk
- Stanley, County Durham
- Stewarton, East Ayrshire
- Stonehaven, Aberdeenshire
- Stornoway, Isle of Lewis (inside Co Op)
- Stranraer, Dumfries and Galloway
- Sturminster Newton, Dorset
- Tenterden, Kent
- Thurso, Caithness
- Tiptree, Essex
- Todmorden, Lancashire
- Tranent, East Lothian
- Troon, Ayrshire
- Ulverston, Cumbria
- Warrenpoint, County Down
- Warwick, Warwickshire
- Watton, Norfolk
- Whitby, North Yorkshire (inside Co Op)
- Whittlesey, Peterborough
- Wigton, Cumbria
- Withernsea, Hull
- Wokingham, Berkshire
- Wrentham, Suffolk
- Wymondham, Norfolk
The coming weeks will be crucial for the administrators, employees, and communities reliant on these stores as the search for a viable future for The Original Factory Shop continues.
