New owner of The Original Factory Shop considers store closures in restructuring plans
The new owner of The Original Factory Shop (TOFS) is considering closing stores and slashing rents as it draws up plans for a restructuring of the retailer.
Modella Capital – which acquired the discount retailer just weeks ago – has called in advisers from Interpath to explore options for TOFS, Sky News has reported.
These options include a potential Company Voluntary Arrangement, which could see the closure of underperforming stores and rent reductions on others.
Sky News reports that a major distribution centre could also be included in potential proposals for restructuring.
TOFS – which was founded in 1969 – trades from around 120 stores in the UK.
It was acquired by Duke Street in 2007 before being taken over by Modella Capital – which is one of the two remaining parties in the race for WHSmith’s high street division.
Modella Capital is also reportedly pursuing a restructuring of the Hobbycraft chain, which it acquired last summer.