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Yahoo
2 days ago
- Business
- Yahoo
June 2025 shop closures
More shops are set to disappear from British high streets, after more than 13,000 closures last year. From January to May, scores of shops shuttered, including those belonging to Morrisons to New Look and WH Smith. Sadly, the trend is set to continue in June, with a number of businesses shutting for good in the coming weeks. Here are the main shop closures in England, Scotland and Wales this month. The discount high street chain plans to close nine shops this month. The following shops will shut: Milford Haven, Pembrokeshire - June 26 Perth - June 28 Chester Le Street, County Durham - June 28 Arbroath, Angus - June 28 Kidwelly, Carmarthenshire - June 28 Pershore, Worcestershire - June 28 Normanton, West Yorkshire - June 28 Peterhead, Aberdeenshire - June 28 Shaftesbury, Dorset - June 28 The retailer previously said it would have to close 'loss-making' stores following financial struggle. In February, private equity firm Modella Capital bought The Original Factory Shop, launching a restructuring effort to renegotiate rent costs at the 88 stores. Modella Capital also bought WH Smith and Hobbycraft. The bargain store chain is set to shut an outlet this month, with a further 200 shops at risk. A shop in Surrey Quays is set to close on June 11. Pepco Group, the parent firm of Poundland, has said it expects to sell the chain by the end of September. In May, the Telegraph reported that up to 200 Poundland stores could face closure as part of a rescue sale. Stephan Borchert, chief executive of Pepco, said: 'At Poundland, trading remains challenging, which is reflected in a profit outturn below expectations for H1 and a weaker outlook for the full year.' Poundland revenues dropped by 6.5 per cent to 985 million euros (£830 million) for the six months to March, compared with a year earlier. The multinational chain is closing an Inverness store this month. The company has put up signs inside the shop, reading: 'We're sorry this store is closing soon but you can still shop at Holland and Barrett has not officially confirmed the closure. The frozen supermarket giant will shut a store in College Square, Margate, on June 21. Iceland has not provided a reason for the closure, however, the retailer confirmed that staff affected by the closure will be offered jobs within the business. The department store is closing for good this month, following 120 years of sales. The final day of trading will be June 8. Until then, the retailer is running a huge clearance sale, with up to 50 per cent cuts on beds, furniture, homeware and clothes. Rising costs and declining high street shopping in the UK has contributed to the retailer's demise. The Windsor flagship shop will stay open, as well as its online business. Five employees will be impacted by the closure, Daniel of Ealing said. The discount retail chain is closing a store on Margate High Street on June 8. A spokesperson for The Works said: 'As part of ongoing plans to optimise our store portfolio, we will be closing our Margate store. 'We have loved being part of the local community and apologise for any inconvenience caused by this closure. 'Customers can continue to shop with us at our nearby stores at Westwood Cross Shopping Centre and Ramsgate Garden Centre.' Five other The Works shops have closed this year due to underperformance.
The Sun
4 days ago
- Business
- The Sun
WHSmith shutting beloved branch TODAY as brand to disappear off high street forever
WHSMITH is shutting a beloved branch today ahead of the brand disappearing off the high street forever. 1 It had been a long-standing part of Doncaster's high street, having opened when the Frenchgate was first built in 1968. Locals have branded the move as a "disgrace" as they prepare for the loss of the store. One upset shopper said: "There will be no point in visiting the Frenchgate soon." While another customer said: "So sad I've just walked past WHSmith and it's ceases trading today that's going to leave a big hole in the Frenchgate centre." And a third added: "Town might as well shut down hardly anywhere open so sad." post office which also operated within the store has also closed. It comes after WHSmith agreed to sell 500 shops in a £76million deal. Retail investor Modella Capital snapped up the portfolio, with the stores eventually set to rebranded as TGJones. Around 5,000 people are employed across the high street shops. WHSmith has over 580 travel stores across airports, hospitals, railway stations and motorway service areas which will continue to live on. Sainsbury's scraps in-store changing rooms leaving shoppers furious Last January, the stationer said it wanted to open 15 new shops in airports, railway stations and hospitals before the end of 2024. The brand has already shuttered up to eight stores popular high street locations, including Halstead in Essex, and Woolwich in London. A branch in Bedford, Bedfordshire will close on July 5. As for Doncaster locals, it will not be the first time they had to wave goodbye to a popular brand. Ann Summers in Doncaster city centre closed back in December and M&S will close a branch in Baxtergate will close this summer. TROUBLE ON THE HIGH STREET It comes amid a tricky period for the retail sector, with consumers having less cash in their wallet to spend at the tills. Hikes to National Insurance contributions, imposed in April, have also added to business costs. Poundland will close three stores across Filton Abbeywood, London and the Isle of Wight in the coming weeks. The brand has already shut up to 11 stores, and up to 200 could close as part of its rescue deal. Bidding for the business started last week. A source told The Sunday Times that Poundland would be priced at "effectively a pound". Gordon Brothers, the ex-owner of Laura Ashley, and Homebase owner Hilco are reported to be in a two way race to win the chain. A decision on who the preferred bidder is could be announced in the coming days. Polish retail giant Pepco said it expects the sale of Poundland to complete by September. Pepco previously said it was looking at"all strategic options" to separate Poundland from its brand. The Polish group said it might turn its focus to its more profitable businesses in Europe. New Look began ramping up its store closure programme prior top April's National Insurance hike. Approximately a quarter of the retailer's 364 stores are at risk when their leases expire. This equates to about 91 stores, with a significant impact on it's 8,000 strong workforce. The company has restructured its store estate twice in the past six years, reducing its portfolio from around 600 UK stores in 2018. RETAIL PAIN IN 2025 The British Retail Consortium has predicted that the Treasury's hike to employer NICs will cost the retail sector £2.3billion. Research by the British Chambers of Commerce shows that more than half of companies plan to raise prices by early April. A survey of more than 4,800 firms found that 55% expect prices to increase in the next three months, up from 39% in a similar poll conducted in the latter half of 2024. Three-quarters of companies cited the cost of employing people as their primary financial pressure. The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year. It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year. Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025." Professor Bamfield has also warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector. "By increasing both the costs of running stores and the costs on each consumer's household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020."
Daily Mirror
20-05-2025
- Business
- Daily Mirror
Discount store with 178 shops is shutting four branches over next few weeks
The Original Factory Shop is closing four of its stores. The discount chain will pull down the shutters on its branch in Peterhead in Scotland on June 28. The retailer confirmed the news of the Peterhead branch closing in a post on Facebook, where it announced a 30% closing down sale. It said: "We would like to take this time to thank all of our customers at Peterhead store. We have loved serving you and being part of the community over the last 18 months. We hope you will pop in to see us before we close. "Our last day will be the 28th of June. Please can we ask that you be respectful to staff as we are all devastated that our store is closing." Replying to the post, one shopper said: "Very sorry to hear this very sad. News definitely has come has a huge shock." A second person said: "Disappointed as there is not many clothes shops around here anymore." Another shopper said: "Very sad I go in to that shop monthly." And a fourth person wrote: "Aww love this shop." Meanwhile, the Original Factory Shop in Market Place, Staveley, Derbyshire is set to close permanently on July 12. The announcement was shared on Facebook and read: "With a heavy heart we regret to inform you that the rumours are true. "The Original Factory Shop Staveley has served you for 20 years and will be closing its doors for the final time on the July 12." Its store in Nairn, Scotland, has also been listed for sale, and its location in Charles Street, Milford Haven, has announced its a 30% closing down sale. A post on Facebook read: "Closing down sale now on in store! Up to 30% across all items." It comes after its owner Modella Capital launched plans to renegotiate rents at 88 of its 178 stores through a company voluntary arrangement (CVA), according to Sky News. A CVA is an agreement between a business and its creditors that allows debts to be paid off over a fixed period of time. The creditors must first approve the CVA before it can be implemented. The Original Factory Shop employs around 2,000 people. A spokesperson for The Original Factory shop told The Press and Journal: "The Original Factory Shop (TOFS) recently confirmed that as part of a restructuring a number of its loss-making stores will have to close. "Closing stores is always a tough decision and we are committed to keeping as many stores open as possible. This is, however, dependent on successful negotiations with landlords as we strive to build a sustainable and successful business for the future. "We have already announced that two stores will close. Additionally, a small number of other stores are currently under review, with their continued operation subject to ongoing negotiations with landlords."
Scottish Sun
20-05-2025
- Business
- Scottish Sun
High street chain with 178 shops puts ANOTHER store up for sale ahead of three more branches shutting
The future of dozens more stores remains uncertain CLOSING TIME High street chain with 178 shops puts ANOTHER store up for sale ahead of three more branches shutting – see full list Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A MAJOR discount store with 178 shops has put one site up for sale ahead of closing three more stores. The landlord of The Original Factory Shop (TOFS) in Nairn, Scotland, has listed the site for sale. Sign up for Scottish Sun newsletter Sign up 1 In February, TOFS was sold to private equity firm Modella Capital, which also owns Hobbycraft and WHSmith's high street stores Credit: Alamy The retail unit is already listed for sale on the TSA Property Consultants website, suggesting it is likely to close soon. This follows news that another TOFS location in Peterhead, Aberdeenshire, has been listed for rent. Staff at the Peterhead store told The Press and Journal that it is expected to shut in June. These developments come just weeks after TOFS' owner, Modella Capital, launched a restructuring effort to renegotiate rents at 88 of its stores. Despite these efforts, the retailer has confirmed that two more stores, in addition to the Peterhead location, will be closing in the coming weeks. Its site in Market Place, Staveley, Derbyshire is set to close permanently on July 12. The announcement, shared on the store's Facebook page, read: "With a heavy heart we regret to inform you that the rumours are true "The Original Factory Shop Staveley has served you for 20 years and will be closing its doors for the final time on the July 12." TOFS' store on Charles Street, Milford Haven, has also announced its closure with the launch of a 30% off closing-down sale. A post on Facebook read: "Closing down sale now on in store! Why are shops closing stores? "Up to 30% across all items." Its unclear when this store will pull the shutters down for the final time. A spokesperson for The Original Factory shop told The Press and Journal: "The Original Factory Shop (TOFS) recently confirmed that as part of a restructuring a number of its loss-making stores will have to close. "Closing stores is always a tough decision and we are committed to keeping as many stores open as possible. "This is, however, dependent on successful negotiations with landlords as we strive to build a sustainable and successful business for the future. "We have already announced that two stores will close. "Additionally, a small number of other stores are currently under review, with their continued operation subject to ongoing negotiations with landlords." While many bargain stores such as B&M and Home Bargains have seemed to profit from the cost of living crisis, The Original Factory store has struggled to stay afloat. Duke Street Capital, which had owned the company since 2007, attempted to offload the business in 2023 through Deloitte, but a deal never came to fruition. In February, TOFS was eventually sold to private equity firm Modella Capital, which also owns Hobbycraft and WHSmith's high street stores. List of stores closing Market Place, Staveley, Derbyshire - July 12 Charles Street, Milford Haven - date not set Peterhead, Aberdeenshire - date not set What's happening at TOFS? Modella Capital, the new owner of the Original Factory Shop, drew up plans to initiate a company voluntary arrangement (CVA) at the end of April. Companies often turn to a CVA as a means to stave off insolvency, which could otherwise result in store closures or the collapse of the entire business. A CVA provides struggling firms with an opportunity to explore strategies to safeguard their future, such as negotiating reduced rent rates with landlords. For TOFS, this involves trying to renegotiate rents at 88 of its 178 stores. However, it's important to note that landlords don't have to agree to reduced rents. If an agreement cannot be reached, TOFS may be forced to close stores, which would unfortunately result in job losses. For now, the future remains uncertain. The retailer has also shuttered more than a dozen stores over the past 12 months. 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. Hard times for discount stores Store closures are indicative of the harsh retail climate which has plagued high streets up and down the UK in recent years. Rising costs, coupled with shoppers tightening their purse strings, have placed pressure on businesses and damaged sales. Bargain retailers such as B&M and Home Bargains have performed better than others thanks to their low price point, but this has created rivalry. However, much like TOFS, Poundland is also grappling with challenges to remain competitive in the market. The discount retailer, owned by Pepco, enlisted advisory firm Teneo earlier this month to manage the potential sale of its business. A significant number of stores could be axed as part of the proposed sale, reports say. It comes after Pepco said it was looking at "all strategic options" to separate Poundland from its brand. The Polish group said it might turn its focus to its more profitable businesses in Europe. Pepco previously warned that hikes to employer national insurance contributions (NICs) and national minimum wage would significantly add to its costs. Chancellor Rachel Reeves said during her autumn statement last year that she would raise employers' NICs from 13.8% to 15%. She also announced a reduction to the threshold at which businesses start paying NICs from £9,100 to £5,000. It's estimated that the move will raise £25billion, costing the equivalent of around £800 per employee for businesses. Late last year, it was revealed that profits at Poundland also tumbled by £641million in the year to September, with bosses again blaming slow sales amid a poor outlook thanks to measures set out by Reeves. The firm is not the only business to have warned of these challenges. The move has been blasted by a number of high street stores including Greggs, Sainsbury's, Next and Halfords, which all said it could force them to raise prices and further bruise the industry.
The Sun
20-05-2025
- Business
- The Sun
High street chain with 178 shops puts ANOTHER store up for sale ahead of three more branches shutting
A MAJOR discount store with 178 shops has put one site up for sale ahead of closing three more stores. The landlord of The Original Factory Shop (TOFS) in Nairn, Scotland, has listed the site for sale. 1 The retail unit is already listed for sale on the TSA Property Consultants website, suggesting it is likely to close soon. This follows news that another TOFS location in Peterhead, Aberdeenshire, has been listed for rent. Staff at the Peterhead store told The Press and Journal that it is expected to shut in June. These developments come just weeks after TOFS' owner, Modella Capital, launched a restructuring effort to renegotiate rents at 88 of its stores. Despite these efforts, the retailer has confirmed that two more stores, in addition to the Peterhead location, will be closing in the coming weeks. Its site in Market Place, Staveley, Derbyshire is set to close permanently on July 12. The announcement, shared on the store's Facebook "The Original Factory Shop Staveley has served you for 20 years and will be closing its doors for the final time on the July 12." TOFS' store on Charles Street, Milford Haven, has also announced its closure with the launch of a 30% off closing-down sale. A post on Facebook read: "Closing down sale now on in store! Why are shops closing stores? "Up to 30% across all items." Its unclear when this store will pull the shutters down for the final time. A spokesperson for The Original Factory shop told The Press and Journal: "The Original Factory Shop (TOFS) recently confirmed that as part of a restructuring a number of its loss-making stores will have to close. "Closing stores is always a tough decision and we are committed to keeping as many stores open as possible. "This is, however, dependent on successful negotiations with landlords as we strive to build a sustainable and successful business for the future. "We have already announced that two stores will close. "Additionally, a small number of other stores are currently under review, with their continued operation subject to ongoing negotiations with landlords." While many bargain stores such as B&M and Home Bargains have seemed to profit from the cost of living crisis, The Original Factory store has struggled to stay afloat. Duke Street Capital, which had owned the company since 2007, attempted to offload the business in 2023 through Deloitte, but a deal never came to fruition. In February, TOFS was eventually sold to private equity firm Modella Capital, which also owns Hobbycraft and WHSmith 's high street stores. What's happening at TOFS? Modella Capital, the new owner of the Original Factory Shop, drew up plans to initiate a company voluntary arrangement (CVA) at the end of April. Companies often turn to a CVA as a means to stave off insolvency, which could otherwise result in store closures or the collapse of the entire business. A CVA provides struggling firms with an opportunity to explore strategies to safeguard their future, such as negotiating reduced rent rates with landlords. For TOFS, this involves trying to renegotiate rents at 88 of its 178 stores. However, it's important to note that landlords don't have to agree to reduced rents. If an agreement cannot be reached, TOFS may be forced to close stores, which would unfortunately result in job losses. For now, the future remains uncertain. The retailer has also shuttered more than a dozen stores over the past 12 months. 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. Hard times for discount stores Store closures are indicative of the harsh retail climate which has plagued high streets up and down the UK in recent years. Rising costs, coupled with shoppers tightening their purse strings, have placed pressure on businesses and damaged sales. Bargain retailers such as B&M and Home Bargains have performed better than others thanks to their low price point, but this has created rivalry. However, much like TOFS, Poundland is also grappling with challenges to remain competitive in the market. The discount retailer, owned by Pepco, enlisted advisory firm Teneo earlier this month to manage the potential sale of its business. A significant number of stores could be axed as part of the proposed sale, reports say. It comes after Pepco said it was looking at "all strategic options" to separate Poundland from its brand. The Polish group said it might turn its focus to its more profitable businesses in Europe. Pepco previously warned that hikes to employer national insurance contributions (NICs) and national minimum wage would significantly add to its costs. Chancellor Rachel Reeves said during her autumn statement last year that she would raise employers' NICs from 13.8% to 15%. She also announced a reduction to the threshold at which businesses start paying NICs from £9,100 to £5,000. It's estimated that the move will raise £25billion, costing the equivalent of around £800 per employee for businesses. Late last year, it was revealed that profits at Poundland also tumbled by £641million in the year to September, with bosses again blaming slow sales amid a poor outlook thanks to measures set out by Reeves. The firm is not the only business to have warned of these challenges. The move has been blasted by a number of high street stores including Greggs, Sainsbury's, Next and Halford s, which all said it could force them to raise prices and further bruise the industry. Why are retailers closing shops? EMPTY shops have become an eyesore on many British high streets and are often symbolic of a town centre's decline. The Sun's business editor Ashley Armstrong explains why so many retailers are shutting their doors. In many cases, retailers are shutting stores because they are no longer the money-makers they once were because of the rise of online shopping. Falling store sales and rising staff costs have made it even more expensive for shops to stay open. The British Retail Consortium has predicted that the Treasury's hike to employer NICs from April 2025, will cost the retail sector £2.3billion. At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40. In some cases, retailers are shutting a store and reopening a new shop at the other end of a high street to reflect how a town has changed. The problem is that when a big shop closes, footfall falls across the local high street, which puts more shops at risk of closing. Retail parks are increasingly popular with shoppers, who want to be able to get easy, free parking at a time when local councils have hiked parking charges in towns. Many retailers including Next and Marks & Spencer have been shutting stores on the high street and taking bigger stores in better-performing retail parks instead. In some cases, stores have been shut when a retailer goes bust, as in the case of Carpetright, Debenhams, Dorothy Perkins, Paperchase, Ted Baker, The Body Shop, Topshop and Wilko to name a few. What's increasingly common is when a chain goes bust a rival retailer or private equity firm snaps up the intellectual property rights so they can own the brand and sell it online. They may go on to open a handful of stores if there is customer demand, but there are rarely ever as many stores or in the same places. The Centre for Retail Research (CRR) has warned that around 17,350 retail sites are expected to shut down this year.
