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Original Factory Shop closes 26 stores amid restructuring
The retailer will shut 26 stores as part of a restructuring plan and rent renegotiations under a CVA, with discounts of up to 50%.
The high street retailer accelerates wind-down plans with discounts as it renegotiates rents under a CVA.
The Original Factory Shop closes 26 stores amid restructuring
The Original Factory Shop has begun closing down sales offering up to 50% off as it restructures. The group plans to shut 26 stores, after already closing 17 and signaling more in the coming weeks. Closures include several Scottish locations such as Perth, Arbroath, Peterhead and Cupar, with Blairgowrie, Kinross and Nairn listed for future dates. The company was sold to Modella Capital in February 2025 and is using a company voluntary arrangement to renegotiate rents and avoid insolvency.
Beyond Scotland, two English stores, Whitchurch in Shropshire and Mexborough in South Yorkshire, were added to the closure list with dates still to be confirmed. Chard will close on September 7, with a clearance sale offering up to 50% off. The retailer notes its 88-store network and says the CVA is intended to renegotiate rents to avoid insolvency. A full list of closures shows how the wind-down is spreading across the country as the business adapts to a tougher market.
Key Takeaways
"This store is closing."
Chard closure notice.
"All stock is reduced up to 50% off original price."
Sale notice at closing stores.
"We have loved serving you and being part of the local community."
Closing message to customers.
"Thank you to our wonderful colleagues for your support throughout our time here in the local community."
Staff farewell note.
The closing wave highlights pressure on the UK high street from online shopping and rising rents. When a retailer with decades of presence shutters a large portion of its estate, it signals a shift in consumer habits and landlord leverage. The plan is framed as a financial maneuver under a CVA and backed by private equity owner Modella Capital, raising questions about who bears the burden for this restructuring.
Communities facing closures may lose a local shopping option and jobs, even as discount seekers flock to clearance events. Investors will weigh the cost of rents and the chance of returning value, while policymakers watch how such restructurings affect town centers. The story suggests a broader trend: big names rethinking footprint in a landscape that rewards nimbleness over breadth.
Highlights
- Closing time carries a local story with it.
- Half price signs shout louder than goodbyes.
- The high street keeps changing as shelves empty.
- What happens next to towns depends on more than discounts.
Budget impact and public reaction risk
The closure wave tied to a CVA raises questions about financial stability and the effect on workers and towns. The involvement of private equity and rent renegotiations may invite scrutiny from investors and local authorities.
Retail landscapes shift quickly as markets push for balance between bargains and community access.
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