The Original Factory Shop has recently entered administration, following the appointment of administrators from Interpath Advisory. This move has put 137 stores and 1,180 jobs at risk. While the physical stores remain open for business as usual, the online operations have been suspended.
According to the administrators, The Original Factory Shop has been struggling with increased costs, including inflation, higher labor expenses, and reduced sales due to decreased consumer spending. The situation was further compounded by challenges with its third-party warehouse and logistics provider. Established in 1969, the retailer was acquired by Modella Capital last year.
Rick Harrison, the managing director at Interpath and joint administrator, expressed regret over the company’s financial difficulties but emphasized their commitment to working with the dedicated employees to explore options for the business and keep the stores operational.
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