The Original Factory Shop has entered into administration putting 1,180 jobs and 137 stores are at risk.
On Wednesday the discount retailer appointed administrators from Interpath Advisory, the business will continue to trade as insolvency experts look at options to help keep it running.
Online operations have ceased, purchases made before Wednesday will still honoured and delivered.
The Original Factory Shop has faced difficult trading conditions due to higher inflation, increased labour costs as a result of Rachel Reeve’s Budgets which has also affected consumer confidence.
Rick Harrison, managing director at Interpath and joint administrator, said, “The Original Factory Shop has long-been a cornerstone of local high streets up and down the country.
“Unfortunately, however, trading challenges have impacted the business such that the company had to be placed into administration.
“Over the coming weeks, we will be working closely with TOFS dedicated team of employees as we endeavour to operate all stores as a going concern while we assess options for the business.”
