A popular retail chain is set to shut down multiple stores due to entering administration amid challenging trading conditions and a significant decline in foot traffic.
The Original Factory Shop is closing its discount outlets in Cromer, Gorleston, Norfolk, and Bungay, Suffolk, effective today. The company’s owner, Modella, announced in January that due to tough trading circumstances and a concerning decrease in holiday season foot traffic, administration was deemed as the only viable course of action.
Similarly, Modella confirmed that another prominent high street retailer under its ownership, Claire’s, is facing the same fate. This development has put approximately 2,500 employees in the UK at the risk of losing their jobs.
The closure schedule includes the shutdown of The Original Factory Shop’s Snettisham branch tomorrow, with two additional closures scheduled for April 4. The Cromer store issued a statement expressing regret over the situation and invited customers to visit for attractive discounts amid the store’s liquidation sale.
The Original Factory Shop has initiated substantial sales promotions across its stores, urging customers to take advantage of discounted products as supplies are limited.
Recent reports from insiders have disclosed further information regarding The Original Factory Shop’s insolvency. An estimation provided in a report by administrators Interpath revealed that the company owed over £30 million to unsecured trade and expense creditors. The total unsecured creditor balance as of the appointment date was reported at £114 million, as per data from the company’s directors.