The Original Factory Shop: UK discount retailer TOFS enters administration with jobs and stores at risk - news

• The Original Factory Shop has entered administration, putting 1,180 jobs and 137 stores at risk
• Administrators say all stores will continue trading while rescue options are explored
• The retailer has been hit by high inflation, weak consumer confidence and rising costs
• No store closures have been announced so far, but the situation remains uncertain
• Shoppers are advised to use gift cards and check returns policies while stores stay open

A major discount retailer known for cut-price clothing, homeware and everyday essentials has entered administration, putting 1,180 jobs and 137 stores at risk.

The Original Factory Shop appointed administrators from Interpath Advisory on Wednesday (January 28).

Administrators say stores will continue trading while options for the chains, which sell products including clothing and homeware, are explored.

That could include a sale, a restructuring or, if a rescue can’t be secured, eventual store closures.

Why has The Original Factory Shop gone into administration?

Like many value-focused retailers, The Original Factory Shop has been squeezed from multiple directions. Administrators said high cost inflation, fragile consumer confidence and rising labour costs linked to government policy were key pressures on the business.

The company had already been through a restructuring and was bought by investment firm Modella Capital last year.

Earlier this month, it filed a notice of intention to appoint administrators, a move also taken by fashion accessories chain Claire’s, which is owned by the same investor.

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Will The Original Factory Shop stores close?

In Yorkshire, The Original Factory Shop has a noticeable footprint, with stores in towns including Garforth and Kippax near Leeds, Ripon and Northallerton in North Yorkshire, and coastal locations such as Whitby, Hornsea and Withernsea.

At this stage, no store closures have been announced. All 137 locations across the UK are continuing to trade while administrators assess whether the business, or parts of it, can be saved.

But administration is a fluid process, and if a buyer can’t be found or costs can’t be brought down, some store closures or job losses may follow. For now, though, customers should expect stores to remain open as normal.

Gift cards are likely still being accepted during the early stages of administration, but this can change quickly. It’s wise to use any outstanding gift cards sooner rather than later.

Likewise, returns and refunds are usually honoured initially, but policies can be tightened during administration. Keep receipts and check in-store before making any new purchases.