The Original Factory Shop recently appointed administrators from Interpath Advisory, becoming one of the latest retailers to face financial difficulties. With 137 stores and 1,180 jobs at stake, the discount retailer’s online operations have been halted while its physical stores remain operational for now.
The company’s challenges stem from cost inflation, higher labor expenses, and reduced consumer spending. Complicating matters further are issues related to its third-party warehouse and logistics provider. Established in 1969, The Original Factory Shop was acquired by Modella Capital last year.
Rick Harrison, the managing director at Interpath and joint administrator, expressed regret over the situation, citing trading obstacles that led to the administration decision. The administrators plan to work closely with the company’s employees to keep the stores running while exploring options for the business’s future.