UK discount retailer The Original Factory Shop enters administration

UK discount retail chain The Original Factory Shop has entered administration after sustained trading pressures, with Richard Harrison and James Clark of Interpath Advisory appointed as joint administrators on 28 January 2026.

Founded in 1969, the retailer operates a nationwide value-led format selling branded apparel, footwear, homewares, and health and beauty products, with a strong presence on local high streets and in market towns. In recent periods, the business has faced margin pressure from higher operating costs and softer demand, compounded by supply chain disruption linked to a third-party warehousing and logistics provider.

Administrators cited a confluence of factors driving the filing, including elevated staffing costs following increases to the National Living Wage and employer National Insurance contributions, alongside subdued consumer spending as household budgets remain constrained. Footfall has also lagged expectations after the peak festive trading window.

The Original Factory Shop was acquired less than a year ago by private equity firm Modella Capital, which has been pursuing strategic options across parts of its retail portfolio. Harrison said the chain has been a fixture on British high streets for decades but that recent trading conditions left no viable alternative to administration. The joint administrators are engaging with stakeholders and potential buyers, with a focus on preserving value and employment where possible.

All 137 bricks-and-mortar stores will continue to trade in the ordinary course while options are assessed. The company’s online operation has ceased with immediate effect. Approximately 1,180 jobs are at risk as the process unfolds.