The Original Factory Shop has recently brought in administrators, with Interpath Advisory being appointed by the discount retailer last week. This move has put 137 stores and 1,180 jobs in jeopardy. While the physical stores remain operational as usual for now, the online operations have been ceased during this period.

According to the administrators, The Original Factory Shop has been struggling with increased costs, particularly in labor and overall expenses, coupled with reduced sales due to consumer spending cutbacks. Compounding these challenges are issues related to the third-party warehouse and logistics provider of the company. Established in 1969, The Original Factory Shop was acquired by investment firm Modella Capital just last year.

Rick Harrison, the managing director at Interpath and one of the joint administrators, expressed regret over the situation, highlighting the longstanding presence of The Original Factory Shop in local communities. Despite the difficulties faced, efforts will be made to sustain operations in all stores with the existing workforce while exploring potential solutions for the business in the upcoming weeks.