The Original Factory Shop may soon vanish from the UK high street for good.
The budget retailer announced today that it has entered administration, putting 137 stores and 1,180 staff at risk.
Modella Capital, which owns The Original Factory Shop, may phone in administrators as soon as this afternoon, according to Sky News.
The business was already on the brink of collapse when Modella bought it last year.
Modella also announced on Monday that Claire’s had gone bust, with about 1,300 jobs now on the line.
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New government financial policies, demanding landlords and a poorly handled transition to a new logistic provider hampered the brand.
Modella owns other struggling businesses, including WH Smith’s high street stores (since renamed TG Jones) and Hobbycraft.
What’s happening to the UK high street?
Boarded-up windows and shuttered storefronts are becoming an increasingly common sight in the UK.
Nearly 40 shops closed every day in 2024, the majority being banks, pharmacies and pubs, according to the retail consortium PWC.
And they won’t be the last – 132,945 high street shops expected to disappear over the next 15 years.
This month has already seen the closures of dozens of stores such as Poundland, River Island and Primark.
Experts have told Metro that many businesses simply can’t keep up with the ways people shop, such as through online outlets or social media.
Some retailers, facing spiralling rents and higher taxes, have little choice but to increase their prices.
But as Vix Leyton, consumer expert at thinkmoney, previously pointed out to Metro, there is another option.
Stores need to offer things that shoppers can’t just click ‘add to basket’ for, like offering exclusive in-store services or events.
Leyton said: ‘We’re seeing a steady retreat of once-beloved names like Claire’s Accessories from the high street, and that stings because those shops weren’t just places to buy things, they were part of growing up.
‘HMV’s comeback shows there is still a future for our favourites, but only for brands willing to move with the times. They moved away from relying on CDs and DVDs and leaned into pop culture, collectibles and in-store events.
‘The high street isn’t dead yet, but nostalgia won’t keep the lights on.’
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