High Street Heartbreak: The End for Original Factory Shop?

The Original Factory Shop is back in the headlines, and this time the story feels like a cliffhanger from a primetime drama. The much-loved discount chain, known for its bargains on fashion, homeware, and toys, has been pushed into administration after a difficult Christmas trading period and months of financial pressure. 

The Original Factory Shop has been part of British shopping streets since 1969. It grew from selling soap products into a nationwide chain with over one hundred stores offering cut-price brands and big-name labels. 

Shoppers know it as the place to hunt for surprise deals, from clothing and beauty to toys and home goods, all under one roof. Families in small towns, where choice is limited, often rely on the chain for affordable everyday items and last-minute gifts. 

The latest twist began after a poor festive trading season that left sales “distressingly” low, according to its owners. The retailer’s current backer, Modella Capital, had taken control only recently and was already exploring a major restructuring plan. 

But the numbers did not improve quickly enough, and the company has now been placed into administration with roughly 140 stores and around 1,220 staff in the firing line. For workers, it is a tense wait as administrators examine which locations can be saved and which may close for good.

The turn of events is especially stark because the group enjoyed a sharp profit rebound after the pandemic, with revenue and profit jumping strongly in the 2021/22 financial year. That bounce created hope that the discount model could ride the cost-of-living wave and stay strong as shoppers chased lower prices. 

However, rising costs, fragile consumer confidence, and intense competition on the high street have now caught up with the chain. Seasonal sales around Christmas, usually a lifeline for retailers, failed to deliver the needed boost. 

Ownership of The Original Factory Shop has also been part of the unfolding story. Private equity firm Duke Street Capital had backed the retailer during earlier expansion. store closures and restructuring. In early 2025, Modella Capital stepped in and bought the chain, promising fresh energy and a plan for a new future. 

A new chief executive, Ian Williams, took over in 2024 as the company tried to refresh its strategy and sharpen its discount appeal. Yet less than a year after that deal, administrators are now in charge of deciding the fate of the business. 

For Loyal shoppers, the big question is whether their local store will survive. Administrators will look for buyers, negotiate with landowners and review each outlet’s performance before making final decisions. Some stores could be rescued, some may be sold, and others could close their doors forever. 

Until then, The Original Factory Shop sits at the centre of a real-life retail drama, with jobs, communities and bargain hunters all waiting to see how the final act plays out.