A discount retailer with several stores across west Wales has fallen into administration.

The Original Factory Shop has 137 stores nationwide, with 1,180 members of staff, including standalone stores in Barmouth, Pwllheli Cardigan and Porthmadog and a presence inside Co-operative stores in Machynlleth and Lampeter.

Administrators Interpath said the outlet had experienced challenging trading conditions, driven by rising costs, fewer shoppers, and government policies which led to "significant increases" in staff costs.

The chain's shops will continue to trade as normal as the administrators assess options, but the company's online shop is closing with immediate effect.

It was sold less than a year ago to private equity firm Modella Capital.

Founded in 1969, The Original Factory Shop sells a wide range of branded products including fashion, perfumes and toiletries.

In a statement, Interpath said: “Rick Harrison and James Clark from Interpath were appointed joint administrators to The Factory Shop Limited, trading as The Original Factory Shop, on 28 January 2026.

“In common with other high street retailers, the company had experienced challenging trading conditions, driven by high cost inflation, fragile consumer confidence and Government policies which have led to significant increases in employment costs. This was exacerbated by issues with the company’s third-party warehouse and logistics operator, which significantly impacted sales.

“Following their appointment, the joint administrators will continue to trade all 137 stores as a going concern while they assess options for the business. The Company’s online store, however, will close.”

Rick Harrison, managing director at Interpath and joint administrator, added: “The Original Factory Shop has long-been a cornerstone of local high streets up and down the country.

“Over the coming weeks, we will be working closely with TOFS dedicated team of employees as we endeavour to operate all stores as a going concern while we assess options for the business.”