The Original Factory Shop, a prominent discount retailer in the UK, has entered administration, raising concerns about the future of its stores and employees. The decision to appoint administrators comes as the company’s St Clears location on Pentre Road, a key branch in Carmarthenshire, faces an uncertain future.
Founded in 1969, The Original Factory Shop operates 137 stores across the UK and employs approximately 1,180 staff. The appointment of administrators Rick Harrison and James Clark from Interpath Advisory was announced on January 28, 2024. The retailer has struggled with challenging trading conditions, including high cost inflation and fragile consumer confidence, which have impacted its operations significantly.
The administrators released a statement indicating that the business had faced mounting difficulties, exacerbated by issues with a third-party warehouse and logistics operator that severely affected sales. While all retail locations will remain operational as the administrators work to assess options for the business, the company’s online store is set to close.
In a statement, Rick Harrison, managing director at Interpath and joint administrator, noted the longstanding role of The Original Factory Shop in local high streets across the country. “Unfortunately, however, trading challenges have impacted the business such that the company had to be placed into administration,” he remarked.
As part of its efforts to clear stock, the St Clears store has launched a closing down sale with discounts of up to 30 percent. The store’s Facebook page encourages customers to take advantage of the sale, stating, “Now’s the time to come and grab yourself a bargain while stocks last. When it’s gone, it’s gone.”
Once a staple in west Wales, the St Clears branch follows the closure of other locations in Fishguard, Haverfordwest, and Milford Haven earlier this year. The Cardigan store remains open but is also advertising a closing down sale, reflecting the broader challenges faced by the retail sector.
As the situation develops, the joint administrators will continue to work closely with The Original Factory Shop’s dedicated team of employees, striving to operate all stores while determining the best path forward for the business. The next few weeks will be critical in shaping the future of this retailer that has been a fixture in the community for decades.
