The Original Factory Shop will permanently close eight high street stores this weekend, with three additional closures expected later this summer. The discount chain’s stores in Perth, Chester Le Street, Arbroath, Kidwelly, Pershore, Normanton, Peterhead, and Shaftesbury will shut down on June 28. Later in July, the branch in Staveley will close on the 12th, followed by the Cupar store on the 27th. The closure date for the Middlewich branch is yet to be announced. This decision follows the recent closure of stores in Heswall and Milford Haven by The Original Factory Shop.
Some of the stores have been running closing down sales, with the Peterhead store currently offering a 70% discount. In a social media post, the store expressed gratitude to its customers and community, inviting them to visit before the closure on June 28.
The owner of The Original Factory Shop, Modella Capital, has initiated plans to renegotiate rents for 88 out of its 178 stores through a company voluntary arrangement (CVA), as reported by Sky News. A CVA is an agreement between a business and its creditors to settle debts over a fixed period, subject to creditor approval. The company employs approximately 2,000 people.
A spokesperson for The Original Factory Shop stated that the closure of some stores is part of a restructuring effort to address loss-making locations. The company aims to keep as many stores operational as possible, pending successful negotiations with landlords to ensure a sustainable and prosperous future. They have already announced the closure of two stores, with a few others under review, pending ongoing discussions with landlords.
