Retail chain, comprising 178 outlets, announces the imminent closure of an additional three locations
In a series of recent developments, UK-based retailers The Original Factory Shop and Hobbycraft are set to close several stores as part of ongoing restructuring processes.
The Original Factory Shop, a discount department store chain founded by the Black family in 1969, is currently focusing on its online sales platform following a string of store closures in 2021. The brand, which has 178 shops across Britain, has announced the closure of 22 stores this year, including three more in Caldicot, Wales, Market Drayton, Shropshire, and Nairn in Scotland.
The affected stores are offering significant discounts of up to 70% as they prepare to close. The closures deal a fresh blow to shoppers wanting to buy their everyday items in person in shops rather than online.
The Original Factory Shop, which was acquired by private equity firm Duke Street in 2007 and later by Modella Capital this year, is currently up for sale as of August 2025. Despite the challenges, the brand managed to deliver a record Christmas performance in 2025 on its online sales platform.
Meanwhile, Hobbycraft, a popular arts and crafts retailer, is set to close nine more stores this month and in September as part of an ongoing rationalization of its estate. Hobbycraft was acquired by private equity firm Modella, the same firm that bought The Original Factory Shop and WH Smith earlier this year.
Modella, known for launching sweeping restructurings after acquiring struggling businesses, is rebranding WH Smith under the name TG Jones. The retail sector is being hammered by higher wages and employer national insurance contributions announced recently, adding to the challenges faced by these retailers.
For the most current developments, monitoring announcements from The Original Factory Shop and Hobbycraft directly or related business news would be advisable. The closures of some physical stores do not necessarily mean the end of the brands, as they continue to maintain an online presence and operate in some locations. However, the future store reopening or expansion plans after the closures remain uncertain.
- In the retail industry, private equity firm Modella Capital, known for rebranding acquired businesses, is currently restructuring The Original Factory Shop and WH Smith, with plans to sell The Original Factory Shop by August 2025.
- Despite facing challenges such as higher wages and employer national insurance contributions, The Original Factory Shop, a discount department store, managed to deliver a record Christmas performance on its online sales platform in 2025.
- In the finance sector, investing in businesses like The Original Factory Shop and Hobbycraft, which are undergoing restructuring processes, could potentially offer opportunities for growth in the retail industry.
