The Original Factory Shop Falls into Administration Threatening Over 1,000 Jobs

Breaking News: Discount Retailer Faces Collapse

High street chains Claire’s and The Original Factory Shop (TOFS) are being put into administration, after their owner said “last-ditch” measures had fallen through, putting about 2,500 UK staff at risk of redundancy. The news marks a devastating start to 2026 for British retail, with 1,220 staff across 140 TOFS’ stores facing an uncertain future.

Why This Matters for British Shoppers

The Original Factory Shop has been a fixture on British high streets since 1969, offering discount fashion, homewares, toys and personal care products. The collapse represents another blow to the struggling retail sector, which saw multiple chains including Poundland and River Island forced into restructuring processes in 2025. For communities across the UK, the loss of TOFS stores means fewer shopping options and job losses in already challenged town centres.

What Went Wrong

The two retailers had already undergone restructuring and were bought by investment firm Modella Capital last year. However, the shift to a new third-party logistics provider is thought to have contributed to its challenges following last year’s deal. Modella said it had made the “tough decision” to kickstart insolvency proceedings for the businesses.

A company spokesman confirmed: “We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again.”

Looking Ahead

The administration of The Original Factory Shop underscores the continuing pressures facing traditional high street retailers in an increasingly digital marketplace. As administrators take control, the focus will shift to finding potential buyers or managing store closures. For the 1,220 employees affected, the coming weeks will be critical in determining whether any jobs can be saved through a potential rescue deal.