THE Original Factory Shop stores in North Wales are holding “closing down sales” after the homeware chain called in administrators.
Interpath have been appointed as the administrators of the business, which was bought by investment firm Modella Capital less than a year ago.
Modella Capital said in January that “last-ditch” measures fell through to save both The Original Factory Shop and Claire’s, which it also owns and instead the “tough decision” was made to start insolvency proceedings.
In North Wales, The Original Factory Shop has stores in Abergele, Bangor, Porthmadog, Barmouth, and Pwllheli.
A statement from the Barmouth store read: “While there is still a small sliver of hope that we could be saved, we are preparing ourselves for the worst.
“We will be starting to hold a closing down sale, starting today (hopefully, the signs gave it away).
“If we carry on doing well, you may find that store will stay open longer to serve the town as it has proudly done for the past 16 years.
“There is a wonderful team here that are still proudly doing their jobs with a smile, so please be kind. Many thanks for all the years of support.”
The Porthmadog store added: “We ask that you please support us, as if sales aren't as high as expected, we have been told that we could be gone a lot sooner.
“Obviously, there are eight of us that work here, and this is a very sad time for us, as we have all worked together for many years.
“We ask that you please be respectful when asking us questions in regards to the store closing, as we currently don't have an answer, but when we do, we will update you.”
Modella said: “This has been a very tough decision.
“We have worked intensively in an effort to save the business, but it is now clear The Original Factory Shop doesn’t have a realistic possibility of trading profitably again.
“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, said: “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.”
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