20-05-2025
Bargain retail chain with nearly 180 shops puts Scottish store up for sale ahead of closing three branches
Read on to find out when the branches close for good
ON THE MARKET Bargain retail chain with nearly 180 shops puts Scottish store up for sale ahead of closing three branches
A BARGAIN retail chain has put one of its Scottish stores up for sale ahead of closing another three branches.
The Original Factory Shop (TOFS) is a discount department store chain with 178 locations across the UK.
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The Original Factory Shop in Narin has been put up for sale (STOCK IMAGE)
Credit: Alamy
And the landlord at one Scottish store has listed the site for sale.
The branch on Nairn's High Street is already listed for sale on the TSA Property Consultants website, suggesting it is likely to close soon.
It comes a few days after the TOFS bosses revealed a branch in Peterhead, in Aberdeenshire, will pull the shutters down for the final time next month.
A member of staff told the Press and Journal it is likely to be sometime in June.
The unit has already been put up on the market for rent and "To Let" signs already appeared above the shop last week.
The branch, located on Errol Street, used to house M&Co.
The Original Factory Shop branch only opened in the Scottish town two years ago.
It has now been listed by TSA Property Consultants.
These developments come just weeks after TOFS' owner, Modella Capital, launched a restructuring effort to renegotiate rents at 88 of its stores.
But in addition to the Peterhead closure, two more stores in England will also shut up shop despite the efforts.
Beloved department store chain shutting more locations with clearance sales on now until final May 25 deadline
Its site in Market Place, Staveley, Derbyshire is set to close permanently on July 12.
And TOFS' store on Charles Street, Milford Haven, has also announced its closure with the launch of a 30% off closing-down sale.
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.
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.
"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."
