The owners of The Original Factory Shop, who opened their Penrith New Squares in September 2023, have placed the chain into administration after poor pre-Christmas trading and concluding the chain has no realistic possibility of trading profitably again.
The discount retailer is owned by investment group Modella Capital, which said the move was a “very tough decision” after efforts to save the business failed. Modella Capital also owns Claire’s Accessories UK & Ireland, which has entered administration at the same time.
The Original Factory Shop has four stores across Cumbria, including its Penrith branch at the entrance to New Squares. The store opened in the unit previously occupied by M&Co, which closed in December 2022 following its own collapse into administration.
In a statement, a Modella Capital spokesperson said the company had “worked intensively” to try to save both chains, making what it described as last-ditch rescue attempts.
“Very sadly, we have had to initiate insolvency proceedings for The Original Factory Shop and Claire’s Accessories UK & Ireland,” the spokesperson said. “Neither has a realistic possibility of trading profitably again.”
Modella Capital said both businesses were left vulnerable by trading conditions before it took ownership and that the wider high street continues to face severe challenges.
The company pointed to a sharp drop in pre-Christmas footfall, weak consumer confidence, rising costs and the impact of government fiscal policies as key factors affecting retailers.
Modella Capital bought The Original Factory Shop less than a year ago from private equity firm Duke Street Capital. It has now filed a notice with the High Court to appoint administrators, putting around 1,200 jobs at risk across roughly 140 TOFS stores nationwide.
Claire’s Accessories UK & Ireland has also entered administration. Modella Capital owns 154 Claire’s stores after buying around half of the UK chain from administrators in September last year.
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