Large retail chain closes another store: full list of locations that will cease operations.

According to The Sun: A large retail chain announced the closure of another location. The Original Factory Shop has already closed several of its stores this year, with Inverness being the latest.

The Scottish store announced the closure on its Facebook page, but did not specify a date.

“We have enjoyed serving you and being part of the community for nearly two years,”

“We hope you will visit us before we close.”

On the occasion of the closure, a sale has been announced with a 50% discount, and discounts are likely to increase.

Disappointed customers express doubt, as it is “sad” to see the store close. The Original Factory Shop is currently undergoing significant restructuring following its acquisition by Modella Capital earlier this year.

Store Closures

As part of the restructuring, the retailer is closing some unprofitable stores. This year, at least 18 locations have already closed, including stores in Perth, Lancashire, and Shropshire.

More stores will soon close, particularly in Mexborough (South Yorkshire) on September 6, followed by a store in Chard the next day. A large sale with discounts of up to 70% is already underway.

The store in Nairn, Scotland will close by September 22.

What is happening with The Original Factory Shop?

The Original Factory Shop was acquired by Modella Capital in February. Modella is known for its practice of buying troubled retailers; recently it also acquired Hobbycraft and WHSmith stores. The new company is actively restructuring, reviewing lease agreements in 88 stores.

At the end of April, plans were developed for a Company Voluntary Arrangement (CVA). This procedure often helps to avoid bankruptcy, which could lead to store closures or the complete collapse of the business.

The Original Factory Shop previously told The Press and Journal that “several unprofitable stores will need to close” as part of the restructuring.

Issues on the Streets

The Original Factory Shop is just one of many retailers facing prolonged difficulties in the market. Stores are struggling with high costs, reduced consumer spending, and the shift to online shopping.

In particular, the clothing retailer New Look closed six stores in the UK this year and exited the Irish market. Last month, Claire's also announced bankruptcy and stopped online orders for its customers.

Meanwhile, Poundland is undergoing significant restructuring and plans to close 68 stores. The clothing chain Monki, owned by H&M, closed its last stores on the street last month.

PAIN IN RETAIL IN 2025

The British Retail Consortium forecasts that rising contributions for employers will cost the retail sector £2.3 billion.

Research from the British Chamber of Commerce shows that more than half of companies plan to raise prices before the beginning of April.

A survey of 4,800 firms showed that 55% expect price increases over the next three months, compared to 39% in a similar survey conducted in the second half of 2024.

Three-quarters of companies noted that the main financial pressure is wage costs.

The Centre for Retail Research (CRR) also warns that around 17,350 retail outlets may close this year.

This follows a tough 2024, when 13,000 stores closed their doors — already 28% more than the previous year.

Professor Joshua Baimfield, director of the CRR, noted: “The results for 2024 show that although the overall level of closures was not as bad as in 2020 or 2022, it still raises concerns as worse times may await us in 2025.”

The professor also warned of a bleak future for 2025, predicting a loss of up to 202,000 jobs in the sector.

“With rising business and household expenses, we may see the number of job losses in retail exceeding those during the pandemic in 2020.”

The retail situation remains challenging, and stores are trying to adapt to new market conditions. The closure of stores by The Original Factory Shop highlights how much the company is struggling to cope with the challenges posed by the modern business environment.

This also signals that other retailers may face similar difficulties if they do not find effective ways to adapt to changing conditions. Many companies are already exploring new strategies to survive based on demand and changes in consumer behavior. In the near future, we may see even more changes in this area.