The Original Factory Shop has closed all 137 stores and its head office, after the retailer collapsed into administration amid growing industry fears over weak consumer confidence and high taxes. The discount department store was put into administration along with Claire’s Accessories earlier this year, as private equity firm Modella
Felix Armstrong
Thursday 16 April 2026 3:22 pm
The Original Factory Shop has closed all 137 stores and its head office, after the retailer collapsed into administration amid growing industry fears over weak consumer confidence and high taxes.
The discount department store was put into administration along with Claire’s Accessories earlier this year, as private equity firm Modella Capital said government policy was forcing British business to “suffer”.
Modella Capital recently snapped up WH Smith’s high street stores – which it has renamed TG Jones – but the locations it acquired have reportedly been struggling with low sales.
Administrators Interpath confirmed on Thursday that all Original Factory Shop stores are permanently shut.
The retailer employed 1,180 people when it fell into administration, and Interpath said the majority of workers have been sacked while a small number were retained to assist in the winding down of the business.
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A spokesperson for Interpath said: “A phased closure of the store portfolio was implemented considering the financial position.
“The majority of employees have been made redundant, while a small number of staff have been retained to assist the joint administrators in their duties as they move towards formally winding up the business.
“A specialist team is in place to support impacted staff with making Redundancy Payments Service claims.”
Modella Capital blamed weak consumer confidence and “adverse government fiscal policies” for its move to wind down Original Factory Shop and Claire’s Accessories.
Read more TG Jones owner Modella Capital weighs latest asset sale
The private equity firm has snapped up a string of high street retailers in recent years, and has ended up offloading several soon after purchase.
Modella put Claire’s and the Original Factory Shop into administration less than two years after buying the firms.
Modella could be eyeing further asset sales
The equity firm is reportedly weighing a sale of Wynsors World of Shoes, a northern shoeseller it acquired just four months ago.
The investment company has called in emergency advisors to lead a drastic restructuring of TG Jones, after purchasing the 480 stores from WH Smith for £76m last year.
Modella’s agreement with WH Smith includes a clause effectively banning the former from shuttering struggling shops within 12 months of the takeover, according to The Telegraph.
The firm has reportedly admitted in private that sales have been hit by the poor name recognition of the new TG Jones brand, with sales at shops retaining the WH Smith storefront performing better than the renovated ones.
Modella was formed as Tailer Debtco in 2022 before being renamed to Modella a year later, and is owned by Hay Wain Group, the family office founded by turnaround specialist Jamie Constable.
Modella held £12.8m in net assets in 2024, according to its most recent balance sheet.
The Original Factory Shop was founded in 1969 and was headquartered in Bolton, offering a range of fashion, homeware, toy and personal care products.
Read more Owner of former WH Smith shops calls for help as stores at risk
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