Discount retailer The Original Factory Shop said it has entered administration in a move putting the future of its 137 stores and 1,180 staff at risk. The high street chain appointed administrators from Interpath Advisory on Wednesday, but will continue to trade from its stores across the UK as the firm assess options to keep it afloat.

Administrators said its troubles have been driven by challenging trading conditions, such as high cost inflation, low consumer confidence, and rising labour costs caused by Government policies. The business filed its intention to appoint administrators earlier this month alongside Claire’s after both companies were bought by investment firm Modella Capital last year.

“The legacy effects of trading prior to our ownership left them highly vulnerable.

“A combination of very weak consumer confidence, highly adverse Government fiscal policies and continued cost-inflation is causing many established and much-loved businesses to suffer badly.”

Rick Harrison, joint administrator at Interpath, added: “The Original Factory Shop has long been a cornerstone of local high streets up and down the country. Unfortunately, however, trading challenges have impacted the business.”

The high street chain was understood to be filing a notice of intention to appoint administrators shortly after Christmas, and today Kroll has been appointed to handle the insolvency of its UK and Irish operations.

Kroll said in a statement on Monday: “Philip Dakin, Benjamin Wiles and Janet Burt of Kroll Advisory Ltd were appointed as joint administrators of CAUKI Ltd on 26 January 2026. The company is continuing to trade during this period.”