The Original Factory Shop, a discount retailer with 11 stores across the north and north-east, is reevaluating its future after struggling to secure a buyer. Despite its recent expansion into Inverness, Stonehaven, Nairn, and Peterhead since August 2023, the company is now considering various strategic options, which may include restructuring or potential store closures.
The retailer, known for its wide selection of products such as clothing, homeware, and toys, has been a familiar presence on local high streets since its founding in 1969. Additional store locations include Fort William, Oban, Invergordon, Fraserburgh, Thurso, Stornoway, and Buckie.
According to reports from The Times. , The Original Factory Shop has been up for sale for years. Its private equity owner, Duke Street Capital, which acquired the business in 2007, had previously valued it at over £100 million in 2013. However, the company has been unsuccessful in finding a buyer.
Advisory firm Teneo has been brought in to help explore “strategic options.” While the term remains broad, it typically signals restructuring, changes in operations, or even store closures. Despite this, there is optimism for the company’s performance during the critical Christmas shopping season. A spokesperson commented, “The business continues to trade as normal and is expected to perform well over the busy Christmas period.”
This development underscores the challenges facing many retailers in the current economic climate. Duke Street Capital has declined to comment further on the situation.