A discount department store chain with a shop in Lancaster looks set to go into administration.
Insolvency proceedings have begun for The Original Factory Shop (TOFS) which has stores around the UK, including at Lancaster Leisure Park.
Owners Modella Capital have also begun a similar process for retailer Claire's Accessories, which had a store in Lancaster city centre until it closed several years ago.
"Very sadly, we have had to initiate insolvency proceedings for The Original Factory Shop (TOFS) and Claire's Accessories UK & Ireland," said a Modella Capital spokesperson on Wednesday.
"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.
"In these circumstances, administration is the only option. In both cases, the legacy effects of trading prior to our ownership left them highly vulnerable.
"The climate on the High Street remains extremely challenging, and TOFS and Claire's are not alone in experiencing difficulties.
"This is borne out by recent Sensormatic statistics and other data sources suggesting an alarming drop-off in pre-Christmas footfall.
"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.
"It’s a simple fact that if retailers can’t make money, they risk having to close – and jobs across the country are lost."
The Lancaster Leisure Park store remains open and Beyond Radio has contacted the expected administrators - Interpath - to ask about its future.
An Interpath spokesperson said they were unable to comment at this stage.
After filing a notice of its intention to appoint administrators, a company has 10 business days’ protection while the necessary process to appoint the administrators takes place.
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