JOBS in Cornwall are under threat after discount retailer The Original Factory Shop collapsed into administration, putting 1,180 roles at risk nationwide and casting uncertainty over stores in Newquay, Redruth and Saltash.

The chain, which operates 137 stores across the UK, was placed into administration on Wednesday (January 28). Administrators Interpath said the business had been squeezed by rising operating costs, falling footfall and sharp increases in employment expenses.

All stores, including those in Cornwall, will continue trading for now while administrators assess options for the business. However, the company’s online store has closed with immediate effect.

Founded in 1969, The Original Factory Shop has become a familiar presence on Cornish high streets, selling discounted branded and own-label goods including clothing, homewares, beauty products, toys and seasonal items. For many towns, the stores play a key role in maintaining footfall and offering affordable shopping.

Interpath said the retailer had been hit by a combination of high inflation, fragile consumer confidence and government policies that led to significant increases in staff costs, including higher National Insurance contributions and the rising minimum wage. The company also faced disruption caused by problems with a third-party warehouse and logistics operator, which affected stock levels and sales.

Rick Harrison, managing director at Interpath and joint administrator, said the retailer had struggled despite its long-standing place on the high street.

“The Original Factory Shop has long been a cornerstone of local high streets up and down the country,” he said. “Unfortunately, trading challenges have impacted the business such that the company had to be placed into administration.”

The business was sold less than a year ago to private equity firm Modella Capital, which also owns Hobbycraft and TG Jones, formerly WH Smith. Earlier this month Modella Capital also began insolvency proceedings for accessories chain Claire’s.