22-05-2025
Major bargain retailer with 178 shops to shut five sites starting in days – is your local on the list?
A MAJOR bargain retailer is shutting five of its locations, including two in just days.
The Original Factory Shop has been struggling in recent years and has said it will have to close some of its loss-making stores as part of a restructuring.
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The next locations to shut for good are Pershore and Normanton - both on June 28.
The Normanton store said in a Facebook post: "We as a store regret to inform you all that the store is closing down on the 28th june.
"Live from today we have up to 30% off in store."
This includes 30% off Christmas and pet items, and 10% off beauty, cleaning, electrical items and footwear.
Everything else will be 20% off.
Devastated shoppers responded: "Ooohhh noooo is something else coming ?"
Others expressed their concern for the shop workers, with one saying: "I'm sorry to hear that girls. Hope you are all ok."
Another added: "So sorry to hear this… In our thoughts from one team to another."
The Pershore store also announced its closure in a Facebook post, saying: "We regret to inform you that the rumours are true The Original Factory Shop Pershore has served you for 30+ years, and will be closing its doors for the final time on June 28th."
It advertised "massive closure reductions" but didn't give any further details.
Beloved department store chain shutting more locations with clearance sales on now until final May 25 deadline
Shoppers said they were "gutted" and it was "such a shame".
One added: "Noooo! That's rubbish I literally always find what I need when I come in."
The three other stores set to close are Peterhead, Staveley and Milford Haven.
Peterhead is due to close in June, although no exact date has been given.
The location has been listed for rent and staff have confirmed its upcoming closure.
Staveley will shut for good on July 12.
It said in a Facebook post that it was closing "with a heavy heart" after 20 years.
It's unclear exactly when Milford Haven will close but it has launched a 30% off sale.
Meanwhile the Original Factory Shop store in Nairn, Scotland, has been listed as up for sale.
The retail unit is already listed for sale on the TSA Property Consultants website, suggesting it is likely to close soon.
The Sun has contacted The Original Factory Shop for comment.
The Original Factory Shop's owner, Modella Capital, had recently launched a restructuring effort to renegotiate rents at 88 of its stores.
A spokesperson told The Press and Journal: "The Original Factory Shop (TOFS) recently confirmed that as part of a restructuring a number of its loss-making stores will have to close.
"Closing stores is always a tough decision and we are committed to keeping as many stores open as possible.
"This is, however, dependent on successful negotiations with landlords as we strive to build a sustainable and successful business for the future."
Bargain chains have had mixed success during the cost of living crisis.
While stores like B&M and Home Bargains appear to have profited, The Original Factory Shop and Poundland have taken a hit.
The Original Factory Shop was sold to private equity firm Modella Capital, which also owns Hobbycraft, in February.
At the end of April it drew up plans to initiate a company voluntary arrangement (CVA).
Companies often use CVAs to prevent insolvency, which could otherwise result in store closures or the collapse of the entire business.
They allow firms to explore different strategies such as negotiating reduced rent rates with landlords.
As we've mentioned, for The Original Factory Shop this has involved trying to renegotiate rents at 88 of its 178 stores.
But landlords don't have to agree to reduced rents and this can result in stores closing.
The Original Factory shop has already shuttered more than a dozen stores over the past 12 months.
Why are retailers closing shops?
EMPTY shops have become an eyesore on many British high streets and are often symbolic of a town centre's decline.
The Sun's business editor Ashley Armstrong explains why so many retailers are shutting their doors.
In many cases, retailers are shutting stores because they are no longer the money-makers they once were because of the rise of online shopping.
Falling store sales and rising staff costs have made it even more expensive for shops to stay open.
The British Retail Consortium has predicted that the Treasury's hike to employer NICs from April 2025, will cost the retail sector £2.3billion.
At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.
In some cases, retailers are shutting a store and reopening a new shop at the other end of a high street to reflect how a town has changed.
The problem is that when a big shop closes, footfall falls across the local high street, which puts more shops at risk of closing.
Retail parks are increasingly popular with shoppers, who want to be able to get easy, free parking at a time when local councils have hiked parking charges in towns.
Many retailers including Next and Marks & Spencer have been shutting stores on the high street and taking bigger stores in better-performing retail parks instead.
In some cases, stores have been shut when a retailer goes bust, as in the case of Carpetright, Debenhams, Dorothy Perkins, Paperchase, Ted Baker, The Body Shop, Topshop and Wilko to name a few.
What's increasingly common is when a chain goes bust a rival retailer or private equity firm snaps up the intellectual property rights so they can own the brand and sell it online.
They may go on to open a handful of stores if there is customer demand, but there are rarely ever as many stores or in the same places.
The Centre for Retail Research (CRR) has warned that around 17,350 retail sites are expected to shut down this year.
