The Original Factory Store enters administration 1180 jobs at risk

The Original Factory Shop (TOFS), which has 29 stores across Scotland, has long served as a familiar presence on high streets.

But the company confirmed this week it has entered administration, putting the future of 1180 jobs and 137 stores across the UK in jeopardy.

Rick Harrison and James Clark of Interpath have been appointed joint administrators.

Ricks 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."

While the company’s physical stores will remain open for the time being, including its Milngaive store, its online shop has been closed immediately.

Shoppers who made purchases online before Wednesday will still receive their orders.

The company will continue trading from its stores across the UK as administrators assess options for the future of the business.

TOFS has entered administration, affecting hundreds of jobs and countless Scottish Stores (Image: Newsquest)

TOFS has been under significant financial pressure for some time.

The company, which sells discounted clothing, homeware, and other goods, launched sales offering up to 70% off at the start of this year.

It was acquired by Modella Capital just last year.

A Modella Capital spokesperson said: "We have worked intensively in an effort to save the business, but it is now clear that The Original Factory Shop doesn’t have a realistic possibility of trading profitably again.

"The legacy effects of trading prior to our ownership left them highly vulnerable – a combination of very weak consumer confidence, highly adverse government fiscal policies, and continued cost inflation is causing many established and much-loved businesses to suffer badly."

Modella has become a significant force in the British retail industry, having bought the WH Smith high street chain last year and taking over arts and crafts retailer Hobbycraft in 2024.

The company had been in talks with third parties regarding a potential sale since filing a notice of intention to appoint administrators in early January.

Its admission that TOFS is unlikely to become profitable again marks a major setback for the retailer and the high streets that rely on its presence.

Claire's has also entered administration, affecting hundreds of jobs and countless Scottish stores (Image: Newsquest)

The news comes amid broader challenges in the retail sector, with Claire’s, another high street brand, also entering administration earlier this month.

Claire’s employs 1355 people in the UK.

Staff at the affected stores now face an uncertain future.

A Modella spokesperson previously added: “Very sadly, we have had to initiate insolvency proceedings for The Original Factory Shop (TOFS) and Claire’s Accessories UK and Ireland.

“This has been a very tough decision. We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again.

“In these circumstances, administration is the only option.

“In both cases, the legacy effects of trading prior to our ownership left them highly vulnerable.”