The Original Factory Shop has recently brought in administrators, with Interpath Advisory taking over last week. This move has put 137 stores and 1,180 jobs in jeopardy. While the physical stores are still operating normally, the online operations have been suspended for the time being.
According to the administrators, The Original Factory Shop has been struggling due to increased costs, including high inflation rates and rising labor expenses, along with reduced sales as consumers are spending less. The situation has been exacerbated by issues related to the company’s third-party warehouse and logistics provider. Established in 1969, The Original Factory Shop was acquired by Modella Capital last year.
Rick Harrison, the managing director at Interpath and one of the administrators, expressed regret over the challenges faced by The Original Factory Shop, a longstanding presence in local communities nationwide. The administrators aim to keep all stores operational while exploring potential solutions for the business in the coming weeks.