The Original Factory Shop entered administration on Jan. 28, 2026, threatening 1,180 jobs amid financial struggles.

On January 28, 2026, The Original Factory Shop went into administration, endangering 1,180 jobs throughout its 137 UK locations. While administrators from Interpath Advisory evaluate options to maintain the business, the retailer, which sells apparel, home goods, and everyday items, will continue to operate physical stores. Pre-existing orders will still be fulfilled, but online operations have been suspended. High inflation, low consumer confidence, growing labor costs, and problems with a third-party logistics provider were the main causes of financial difficulties. The collapse highlights larger issues in the UK retail sector and comes after Claire's UK went into administration earlier this week. Both companies are owned by investment firm Modella Capital.