The Original Factory Shop is set to permanently close eight high street stores this weekend, with three additional closures planned for later this summer. The discount chain will be shutting down stores in Perth, Chester Le Street, Arbroath, Kidwelly, Pershore, Normanton, Peterhead, and Shaftesbury on June 28.
Further closures are scheduled for the summer, with the Original Factory Shop closing its Staveley branch on July 12, followed by the Cupar store on July 27. The closure date for the Middlewich branch has not been finalized. This decision follows the recent closure of shops in Heswall and Milford Haven.
Some of the stores have been advertising closing down sales on social media platforms. For instance, the Peterhead store is currently offering discounts of up to 70%. In a social media post, the store expressed gratitude to its customers and announced its final day of operation as June 28.
The owner of The Original Factory Shop, Modella Capital, has initiated plans to renegotiate rents at 88 of its 178 stores through a company voluntary arrangement (CVA), as reported by Sky News. A CVA is a formal agreement between a company and its creditors to repay debts over a specific period, subject to creditor approval. The Original Factory Shop has approximately 2,000 employees.
A spokesperson for The Original Factory Shop stated that the closure of certain stores is part of a restructuring process due to their financial challenges. The company is dedicated to maintaining as many stores operational as possible, pending successful negotiations with landlords to ensure a sustainable and thriving business in the future. The spokesperson highlighted that two stores have already been confirmed for closure, with a few others currently under review based on ongoing discussions with landlords.
