Major discount store with 178 shops confirms it will shut ANOTHER site as future of dozens of stores hangs in balance

The Sun

16-05-2025

A MAJOR retailer with 178 stores is shutting another location in weeks as the future of dozens more hangs in the balance.
The Original Factory Shop (TOFS) in Peterhead, Scotland, will pull down its shutters for the final time next month.
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The closure comes just weeks after the retailer's owner, Modella Capital launched a restructuring effort to renegotiate rents at 88 of its stores.
The Peterhead store is likely to close in June, according to a store member, The Press and Journal reports.
The retail unit has also been listed for rent on property consultancy website TSA Property Consultants.
Shoppers and locals finding out the branch is shutting for good have been left gutted.
One said on Facebook: "I feel for the staff, they are always very nice."
Meanwhile, a third added: "Not long opened."
It comes as two other TOFS stores are set to shut - one in Milford Haven, Wales, and another in Staveley, Derbyshire.
The Staveley store will welcome in customers for the final time on July 12 while an exact closure date has not been confirmed for the Milford Haven branch.
A closing down sale has also been launched at the Milton Haven site with up to 30% off.
Britain's retail apocalypse: why your favourite stores KEEP closing down
What is happening at TOFS?
Modella Capital, a private equity firm which now owns TOFS, drew up plans to renegotiate rents at 88 of the company's stores in April.
The proposals come as part of a company voluntary arrangement (CVA).
A CVA allows businesses to explore opportunities to survive including negotiating rents with landlords.
Businesses usually take out a CVA to avoid having to close stores and prevent themselves from going bust.
History of The Original Factory Shop
FOUNDED in 1969 by the Black family in Keighley, the first shop was part of Peter Black's retail network.
Initially, it focused on selling surplus soap produced by one of Black's factories, offering local communities great value.
Over the years, TOFS evolved from its humble beginnings, expanding its product range to include clothing, homeware, beauty products, toys, and more.
It became known for offering a diverse selection of well-known brands at discounted prices.
The company grew steadily, reaching 185 stores by 2011 and expanding its headquarters and warehouse in Burnley to accommodate its increasing needs.
In 2007, the chain was acquired by private equity firm Duke Street Capital.
Since then, TOFS has undergone various transformations, including store closures and openings, as it adapted to the changing retail landscape.
In February 2025, Modella Capital, the owner of Hobbycraft, acquired TOFS.
However, if the CVA is unsuccessful, it could lead to TOFS stores closing and staff losing their roles.
Specifically, around 176 head office staff and warehouse employees working for TOFS could reportedly lose their jobs.
TOFS has closed more than a dozen stores over the past 12 months.
HIGH STREET STRUGGLES
UK high streets have been in decline for years due to the onset of online shopping.
High inflation in recent years has chipped away at shoppers' wallets and purses too.
A recent report from PwC noted a "continued move away from the high street" by retailers in 2024 with shops outside of town and city centres seeing less closures and more openings.
It said this was being driven by both leisure outlets and larger retailers shifting from high streets to retail parks which offer shoppers "greater convenience".
The Centre for Retail Research said more than 13,000 high street stores shut in 2024, with more to come in 2025.
The centre's analysis found that 13,479 stores, the equivalent of 37 each day, shut their doors for good over the calendar year.
Of these, around 11,340 independent shops were shut during the year - a 45.5% jump against 2023.
The centre estimates around 17,350 stores will shut in 2025 too, linking the rise to hikes in employer National Insurance contributions (NICs) and national minimum wage.
Since April, employers have had to pay NICs at a rate of 15%, up from 13.8%, starting from £5,000 instead of £9,100.