The Original Factory Shop Enters Administration, 1,200 Jobs at Risk

The Original Factory Shop (TOFS), a discount retailer with 137 stores across the UK, has entered administration, placing approximately 1,180 jobs at risk. The appointment of administrators from Interpath Advisory was confirmed on January 28, 2026, following a notice of intention to appoint administrators filed earlier in the month. The chain will continue to operate its stores while exploring options for potential rescue or sale.

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The decision to enter administration has been attributed to several challenging trading conditions. Administrators cited high cost inflation, fragile consumer confidence, and rising labor costs linked to government policies as significant factors impacting the retailer's financial performance. Additionally, issues with a third-party warehouse and logistics operator further exacerbated the situation, leading to weakened sales.

Full list of 137 Original Factory Shop stores at risk as administrators appointed

Modella Capital, which acquired TOFS in February 2025, stated that the legacy effects of previous trading left the company vulnerable. The firm expressed that despite intensive efforts to save the business, it became clear that TOFS did not have a realistic possibility of trading profitably again.

The Original Factory Shop enters administration

TOFS reported a pre-tax loss of £5.6 million for the year ending March 31, 2024, with sales declining by 1% to £117.5 million. The administration comes just six months after a restructuring effort that included relocating its head office and distribution center and negotiating rent reductions on several stores.

The Original Factory Shop enters administration

The administration of TOFS is part of a broader trend affecting the UK retail sector, where many established brands are struggling to adapt to changing market conditions. The recent collapse of Claire's Accessories, another retailer owned by Modella Capital, has compounded concerns, with around 1,300 jobs also at risk. Together, these two administrations highlight the significant pressures facing the retail industry, including increased competition from online retailers and changing consumer spending habits.

Discount chain trading since 1969 in administration with 137 stores at risk - full list

Rick Harrison, managing director at Interpath and joint administrator, remarked, "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." He emphasized the commitment to work closely with TOFS's dedicated team to operate all stores as a going concern while assessing options for the business.

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Owen Morgan, managing director at HR and outplacement specialist INTOO UK & Ireland, described the situation as "a sad day" for the high street, noting the potential ripple effects on employees and their families. He stressed the importance of transparency and fairness during this difficult period, highlighting the broader instability affecting many retailers.

The Original Factory Shop collapses into administration with 137 stores and 1,180 staff at risk

As the administration process unfolds, all 137 TOFS locations will continue trading while options for the business are evaluated. However, if a buyer cannot be found or costs cannot be reduced, store closures and job losses may follow. Customers are advised to use gift cards and check returns policies while stores remain open.

Original Factory Shop enters administration

The future of TOFS remains uncertain, as the retail landscape continues to evolve under the pressures of economic challenges and shifting consumer behavior.

The Original Factory Shop enters administration