A large discount department, The Original Factory Shop, store chain has reported a 1% decline in sales to £117.5m for the year ended 31 March 2024, down from £118.7m the previous year. Pre-tax losses widened significantly to £5.6m from £1.7m, while EBITDA fell to £1.6m from £4.6m.
© The Original Factory Shop
Despite the financial setbacks, the company, noted growth in its gross profit margin, which rose by 1.2% to 51.3%, and a 1.2% increase in average basket value. Concession sales grew by 31%, attributed to enhanced in-store offerings and improved customer targeting.
During the year, the group opened 27 new stores and closed 20 underperforming sites. In February 2025, it was acquired by Modella Capital and secured £3m in third-party loans. It also renewed a £12m asset-backed loan facility.
Following a Company Voluntary Arrangement (CVA) approved in May 2025, the company announced plans to exit its Burnley head office and distribution centre. A store transformation programme is underway, aiming to modernise store layouts and boost customer appeal.
Multiple closures have already taken place across the UK, with further shutdowns expected. Directors believe these actions are essential to "future proof" the business and remain competitive in the discount retail sector.
Source: www.bigfurnituregroup.com