The Original Factory Shop has fallen into administration, putting the future of the chain’s 137 stores and 1,180 staff at risk.
The discount retailer, which sells products including clothing and homeware, appointed administrators from Interpath Advisory on Wednesday.
It will continue to trade from its stores across the UK as the insolvency experts assess options in a bid to keep it afloat.
Administrators said The Original Factory Shop’s troubles have been driven by challenging trading conditions, linked to high cost inflation, fragile consumer confidence and rising labour costs caused by government policies.
The business filed its intention to appoint administrators earlier this month alongside fashion accessories brand Claire’s.
The two retailers had already undergone restructuring and were bought by investment firm Modella Capital last year.
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