"Are you kidding? That place is a total clown factory. Last time we went, some muppet backed his Land Rover into 2 parked cars and ran over a potted tree on his way out."
b) A place where common sense is exchanged for a promotion or management training, (Also known as "Clown School")...thus creating a factory of sorts, specifically of Clowns.
C) A place where the biggest clowns (management), create a circus like environment where incompetance and stupidity reins supreme and filters down into lower management ranks. The entry level workers are left confused, as they still possess common sense, and do not speak "Clownese". The Clowns constantly try to fix that which is not broken in order to justify their jobs, thus turning a happy well-functioning work environment into shit. Anyone with a brain is laid off or fired, and the Management Clowns start creating yes-man clones of themselves in the back room, thus a "Clown Factory".
Also see "Fuckshow"
"Man, I can't wait to find another job and get out of this clown factory!"
"The management is really turning this place into a Clown Factory..."