A much-loved Cleethorpes shop faces an uncertain future, with the firm now on the brink of administration.
The 140-store chain, The Original Factory Shop, bought by Modella less than a year ago, has filed a notice with the High Court to appoint administrators. Thousands of jobs are at risk as a result.
The chain is owned by private equity firm Modella Capital, which recently acquired Claire’s Accessories and WH Smith.
Administration is being described as the “only option” for the chain, with insolvency proceedings now underway.
A Modella spokesperson said: “This has been a very tough decision. We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again.
“A combination of very weak consumer confidence, highly adverse government fiscal policies and continued cost inflation is causing many established and much-loved businesses to suffer badly.”
(Image: Google Maps)
Part of the Gi Grimsby News team since 2020.