A well-known UK discount chain entered administration earlier this year, and its debts have now been revealed. The Original Factory Shop faced difficulties and began to close its stores. The Factory Shop Ltd, trading as The Original Factory Shop, was established in 1969 and operates as a UK-wide discount department store chain.
The retail brand went into administration in January after its owners, Modella Capital, said “last-ditch” measures to rescue the high street shop had not worked. The brand had an outlet in Lancaster Leisure Park which is now closed. It also has a store in Garstang which is set to close on March 29.
It underwent restructuring amid fears over its future, with investment firm Modella Capital stepping in to save it.
However, in January this year, the group said it would have to start insolvency proceedings for the business.
Insider reports that details surrounding the insolvency have now been revealed.
According to an estimate included in a new report by administrators Interpath, The Original Factory Shop owed more than £30m to unsecured trade and expense creditors.
When administrators were appointed in January, the company had 137 stores across the UK.
The store sold a wide range of branded and self-sourced products, including clothing, homewares, beauty items, toys and seasonal goods at discount prices.
The total unsecured creditor balance as at the date of appointment stood at £114m, based on figures provided by the company's directors.
That figure incorporates about £31m owed to trade and expense creditors, including £12.6m to trade creditors, £10.7m of landlord claims and £79m to connected companies.
Richard Harrison and James Clark of Interpath were appointed as joint administrators of The Factory Shop Ltd, trading as The Original Factory Shop on January 28, reports Lancashire Post.
A spokesperson for The Original Factory Shop Garstang said on Facebook: “Sadly today we have been given the details on a closure day. Sunday, March 29, will be our last day.
“There are still lots of bargains in store and please remember that we do not set the prices and cannot do deals to make things cheaper.
“We are likely to be very busy on the tills and will go as quick as we can but please be patient with us and remember we are all losing our jobs when we close so please be kind.”