The Original Factory Shop is set to close eight high street stores permanently this weekend, with plans for three more closures later this summer. Among the locations shutting down are stores in Perth, Chester Le Street, Arbroath, Kidwelly, Pershore, Normanton, Peterhead, and Shaftesbury on June 28. Additionally, the Original Factory Shop will close its Staveley branch on July 12 and its Cupar store on July 27. Another closure is expected for the Middlewich branch, but the closing date has not been announced yet. This decision follows the recent closures of shops in Heswall and Milford Haven.
Some of the stores have been advertising closing down sales on social media platforms. For example, the Peterhead store is currently offering a discount of 70%. 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 closures are part of a larger restructuring effort by Modella Capital, the owner of The Original Factory Shop. The company is seeking to renegotiate rents at 88 of its 178 stores through a company voluntary arrangement (CVA). A CVA is a formal agreement that allows businesses to pay off debts over a specified period, subject to creditor approval. The Original Factory Shop, which employs approximately 2,000 people, aims to keep as many stores open as possible through successful negotiations with landlords to ensure a sustainable future.
A spokesperson for The Original Factory Shop acknowledged the closure of certain loss-making stores, emphasizing the company’s commitment to maintaining operational stores through constructive discussions with landlords. While two closures have been confirmed, additional stores are under review, with their future contingent on ongoing negotiations with landlords.