The Original Factory Shop Closes All 137 UK Stores

The discount retailer The Original Factory Shop ceased all operations on April 4, 2026, closing its entire network of 137 stores and its head office. The collapse followed the company's entry into administration in January 2026, resulting in the redundancy of the majority of its 1,180 employees.

Interpath Advisory, the appointed administrator, oversaw a phased closure of the store portfolio after determining there were no viable offers to sustain the business. The retailer owed more than £30 million to unsecured trade and expense creditors at the time of the collapse. During its final weeks, the chain held clearance sales with discounts reaching 85 percent to liquidate remaining stock.

Modella Capital, which acquired the business from Duke Street Capital in February 2025, attributed the failure to high cost inflation, fragile consumer confidence, and adverse government fiscal policies that increased labor costs. Administrators also cited operational struggles with a third-party warehouse and logistics operator that weakened sales. The company had previously attempted a company voluntary arrangement in April 2025 to negotiate rents and target loss-making stores before ultimately failing.