The Original Factory Shop saved from closure
THE ORIGINAL FACTORY SHOP, located on Charles Street, Milford Haven in the former Woolworth’s premises, has announced it will remain operational, dispelling earlier concerns about its potential closure.
This news, announced on Facebook on Sunday (Mar 17) will come as a relief to both the store’s employees and the local community, who had been bracing for the loss of what is considered the largest shop in the area.
The announcement said: “We have some fantastic news! The store shall now be staying open! We shall resume to normal deliveries in the next week or two, but in the meantime we are facing a clear out, we have a fantastic huge sale on instore.
“Ladies, Men’s. Children’s-wear and even Just Elegance. All this can be found at the back of store, many items up to half price.”
Financial documents reveal that the national chain had experienced financial difficulties, marking a shift from a profit of £6.6 million to a pre-tax loss of £286,000 for the year ending March 26, 2023.
This downturn followed the termination of government COVID-19 support measures, impacting the retailer’s operations significantly. Revenue also saw a decline from £124.4 million to £118.7 million, with a slight decrease in the workforce from 1,936 to 1,877 employees.
The retailer’s struggle was further compounded by a shift in consumer behavior, with an increased preference for online shopping leading to reduced foot traffic in brickand-mortar stores.
Despite these challenges, the company had briefly returned to profitability before slipping back into financial distress.
In June 2018, The Original Factory Shop had announced the closure of 32 stores, a decision influenced by falling profits and the withdrawal of credit insurance.
Nonetheless, the company sought to overcome its recent financial hurdles by renewing a £12 million flexible asset-based loan facility for an additional three years, providing a lifeline until December 2023.
The company’s board has acknowledged the financial difficulties but remains optimistic about the retailer’s future, citing a robust financial performance with an EBITDA of £4.6 million, despite a downturn from the previous fiscal year’s £8.5 million. The opening of ten new sites in strategic locations has been highlighted as a key part of its recovery strategy.
The potential closure of The Original Factory Shop in Milford Haven had sparked concerns among staff and residents, threatening a significant change to the local retail landscape. The news that the store is to remain open marks a positive development for Charles Street ensuring the continuation of a key retail outlet that provides a variety of products to local shoppers.