Latest news with #TheOriginalFactoryShop
Scottish Sun
3 days ago
- Business
- Scottish Sun
Full list of 14 shops set to close next month in a blow to shoppers – is your area affected?
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) MAJOR retailers will close several stores for good this month as the high street continues to face difficulties. This year businesses have faced increased costs due to Government changes announced in the Budget. Sign up for Scottish Sun newsletter Sign up 1 14 shops are set to close in June as retailers face lower footfall and higher costs Credit: Getty An increase in employer National Insurance contributions, energy and rent costs and lower customer footfall have all piled on pressure. As a result, some retailers have been forced to hike prices, review expansion plans and reduce the number of stores they have. But remember, retailers regularly close shops for a number of reasons, not just because they are struggling. For example, they may have a nearby store that is performing better or may want to move to a location that will have a higher footfall, such as a retail park. Here is a full list of the shops we know are shutting in June 2025. The Original Factory Shop The discount high street chain is set to close nine shops next month as it prepares to shutter a total of ten branches in the coming weeks. The Original Factory Shop previously warned it would have to shut some 'loss-making' locations after it began to struggle in recent years. The retailer is now set to close the following shops this month: 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 It will also close a store in Staveley, Cumbria on July 12. Private equity firm Modella bought The Original Factory Shop back in February and has since launched a restructuring effort to renegotiate rents at 88 The Original Factory Shop stores. Modella also recently bought Hobbycraft and WHSmith's high street shops. Poundland Poundland is set to close a store this week as a further 200 shops remain at risk. The bargain retailer is set to close its branch in Surrey Quays, London, on June 11. 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. Bidding for the business started last month. 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 be completed by September. Daniel of Ealing The iconic department store will close its doors for good in June after 120 years on the high street. The retailer has launched a huge clearance sale, with up to 50% off beds, furniture, homeware and fashion. Its final day of trading will be June 8. Rising costs and a struggling high street have forced the family-run business to call time on the store. The business was founded in 1901 by Walter James Daniel and began as a small draper's shop in Ealing, London. The Windsor flagship shop will remain open, alongside its online business. The firm said five Daniel employees will be impacted by the closure. The Works The Works is set to close its Margate High Street store on June 8. Its next nearest store will be at the Westwood Cross Shopping Centre or Ramsgate Garden Centre. 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.' The chain has already closed five other branches this year. These closures are part of the normal process of closing under performing sites. Iceland The supermarket chain will close its store in College Square, Margate, on June 21. Iceland has not yet confirmed the reason for the sudden closure but it said that staff at the Margate branch will be offered jobs within the business. Iceland is completing a broader reshuffle of its operations as it adapts to shifting consumer habits, cost pressures and the growing demand for convenience and online shopping. Ginger The much loved clothing shop will close its doors for good this month after nearly 50 years in business. Ginger will shut for good on June 7, after the owners said they were forced to make an 'incredibly difficult decision'. The shop was founded by David and Rodger Kingsley in 1978 following the success of their sister company Jonathan Trumbull in 1971. The store manager blamed the current economic climate and the aftermath of Covid-19 for the business's hardship. The shop has launched a closing down sale as it prepares to close. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
The Sun
3 days ago
- Business
- The Sun
Full list of 14 shops set to close next month in a blow to shoppers – is your area affected?
MAJOR retailers will close several stores for good this month as the high street continues to face difficulties. This year businesses have faced increased costs due to Government changes announced in the Budget. An increase in employer National Insurance contributions, energy and rent costs and lower customer footfall have all piled on pressure. As a result, some retailers have been forced to hike prices, review expansion plans and reduce the number of stores they have. But remember, retailers regularly close shops for a number of reasons, not just because they are struggling. For example, they may have a nearby store that is performing better or may want to move to a location that will have a higher footfall, such as a retail park. Here is a full list of the shops we know are shutting in June 2025. The Original Factory Shop The discount high street chain is set to close nine shops next month as it prepares to shutter a total of ten branches in the coming weeks. The Original Factory Shop previously warned it would have to shut some 'loss-making' locations after it began to struggle in recent years. The retailer is now set to close the following shops this month: 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 It will also close a store in Staveley, Cumbria on July 12. Private equity firm Modella bought The Original Factory Shop back in February and has since launched a restructuring effort to renegotiate rents at 88 The Original Factory Shop stores. Modella also recently bought Hobbycraft and WHSmith's high street shops. Poundland Poundland is set to close a store this week as a further 200 shops remain at risk. The bargain retailer is set to close its branch in Surrey Quays, London, on June 11. 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. Bidding for the business started last month. 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 be completed by September. Daniel of Ealing The iconic department store will close its doors for good in June after 120 years on the high street. The retailer has launched a huge clearance sale, with up to 50% off beds, furniture, homeware and fashion. Its final day of trading will be June 8. Rising costs and a struggling high street have forced the family-run business to call time on the store. The business was founded in 1901 by Walter James Daniel and began as a small draper's shop in Ealing, London. The Windsor flagship shop will remain open, alongside its online business. The firm said five Daniel employees will be impacted by the closure. The Works The Works is set to close its Margate High Street store on June 8. Its next nearest store will be at the Westwood Cross Shopping Centre or Ramsgate Garden Centre. 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.' The chain has already closed five other branches this year. These closures are part of the normal process of closing under performing sites. Iceland The supermarket chain will close its store in College Square, Margate, on June 21. Iceland has not yet confirmed the reason for the sudden closure but it said that staff at the Margate branch will be offered jobs within the business. Iceland is completing a broader reshuffle of its operations as it adapts to shifting consumer habits, cost pressures and the growing demand for convenience and online shopping. Ginger The much loved clothing shop will close its doors for good this month after nearly 50 years in business. Ginger will shut for good on June 7, after the owners said they were forced to make an 'incredibly difficult decision'. The shop was founded by David and Rodger Kingsley in 1978 following the success of their sister company Jonathan Trumbull in 1971. The store manager blamed the current economic climate and the aftermath of Covid-19 for the business's hardship. The shop has launched a closing down sale as it prepares to close.
16-05-2025
- Business
Milford Haven's largest shop to close after 15 years of trading
Final day of trading set for 26 June as staff express heartbreak and community voices support MILFORD HAVEN will lose one of its most prominent retailers next month, as The Original Factory Shop has confirmed it will permanently close its doors on 26 June after 15 years of service to the town. The announcement, made via social media on Thursday (May 16), ended weeks of speculation about the future of the Charles Street store. Located in the former Woolworths building, The Original Factory Shop has been a key part of the high street since 2009, offering fashion, homewares, toys and personal care items. 'With a heavy heart we regret to inform you that the rumours are true,' the store posted. 'The Original Factory Shop Milford Haven has served you for 15 years and will be closing its doors for the final time on the 26th June. We have loved being a part of this community – in fact, no, we are proud!' Staff at the store have asked for kindness and understanding from the public in the coming weeks, describing the situation as 'truly devastating.' Milford Haven Town Council responded with a public message of support, writing: 'Sending our very best wishes to all the staff at The Original Factory Shop – Milford Haven.' Financial difficulties behind the closure As previously reported by The Herald, the store had been under threat since the beginning of the year, following a period of financial instability for the national retailer. The company recorded a pre-tax loss of £286,000 in the year ending March 2023, down from a £6.6 million profit the year before. Revenues also fell from £124.4 million to £118.7 million, with a modest reduction in staff numbers. These figures were attributed to the end of government COVID-19 support measures, rising operational costs, and a shift in consumer habits towards online shopping. A short-lived clearance sale and earlier announcement that the Milford Haven branch would remain open ultimately failed to reverse the situation. The closure will leave a large unit vacant in a prominent part of Charles Street, prompting concerns about the continued decline of high street retail in the town. However, plans are already being developed to bring new life to the site. Health and fitness centre proposed for site The Herald understands that a planning application has been submitted to convert the premises into a new health and fitness centre. The facility, proposed by Inner Tiger Fitness, would operate 24 hours a day and offer gym facilities, fitness classes, a protein bar, sunbeds and a health-focused retail area. The project aims to promote both physical and mental well-being and is expected to create several new jobs locally. This potential redevelopment offers a glimmer of hope for Milford Haven's town centre, which has seen several major retailers close in recent years. If approved, the fitness centre could bring renewed footfall and energy to Charles Street, helping to offset the impact of the store's closure. In the meantime, The Original Factory Shop is inviting customers to visit before the final trading day on 26 June — whether to take advantage of end-of-line bargains or simply to say goodbye.
Yahoo
24-04-2025
- Business
- Yahoo
Hundreds of jobs at risk as The Original Factory Shop launches survival plan
Nearly 1,000 jobs could be under threat at The Original Factory Shop (TOFS), one of Britain's largest discount retailers, as part of a survival plan which centres on plans for swingeing rent cuts. Sky News has learnt that Modella Capital, the new owner of TOFS, has drawn up plans to renegotiate rents at 88 of the company's 178 stores. The proposals are contained in a company voluntary arrangement (CVA), a last-ditch restructuring process, which was launched on Thursday. TOFS employees are said to have been briefed on the plans. The chain sells beauty brands such as L'Oreal, the sportswear label Adidas and DIY tools made by Black & Decker. It employs about 2,000 people, with a proportion of its 176 head office and warehouse employees understood to be facing redundancy. Creditors will be asked to vote on the plans at a meeting in mid-May. The CVA is being handled by Interpath Advisory. Although there are no definite store closures, people familiar with the plans said half of TOFS' estate was at risk if landlords did not agree to the rent demands. It is the second such brutal restructuring to be launched by a Modella Capital-owned retailer this week. Sky News revealed on Tuesday that Hobbycraft, which the investor also owns, is also launching a CVA which would entail the closure of nine shops. Hundreds of jobs could be at risk there too if rent cuts are not acceded to. The blueprint risks becoming a controversial one for Modella and for WH Smith, which has just agreed the sale of its high street arm to the investment firm. Retail insiders believe a similar restructuring is inevitable at WH Smith, which Modella has said will be renamed in town centres as TG Jones. "In response to the challenging retail environment of the last year, The Original Factory Shop (TOFS) has today announced a proposed Company Voluntary Arrangement (CVA) in order to protect the future of TOFS as a business and to allow it to flourish in the future," a statement from the company said. "Under TOFS' plan, which will be subject to a vote by the company's creditors on May 14, TOFS will adjust its store estate (by, where possible, renegotiating the leases on a number of its stores that are loss-making), return to the deal-centric stock and purchasing strategy it is famous for, invest in online channels, and re-align its support centre and logistics operations. "All employees have been informed of the CVA proposal. "A redundancy consultation will begin with employees in those TOFS stores where the company is seeking to renegotiate the lease, in the event that those negotiations are not successful. "There will also be a reduction in the number of employees in the company's Head Office and Warehouse in Burnley. "There will be no change in the day-to-day running of the business while this plan is implemented, and management will keep all TOFS colleagues updated as the process continues. "While these changes are necessary, TOFS remains committed to serving our loyal customers across the UK. "Our plan aims to put the business on sustainable footing, protecting as many jobs as possible, and allowing us to return to offering the exceptional value and deals our customers expect from us." TOFS, which was founded in 1969, was bought by the private equity firm Duke Street in 2007. Duke Street had tried to sell the business before, having supported it through the COVID-19 pandemic with a cash injection of more than £10m.
Sky News
24-04-2025
- Business
- Sky News
Hundreds of jobs at risk as The Original Factory Shop launches survival plan
Nearly 1,000 jobs could be under threat at The Original Factory Shop (TOFS), one of Britain's largest discount retailers, as part of a survival plan which centres on plans for swingeing rent cuts. Sky News has learnt that Modella Capital, the new owner of TOFS, has drawn up plans to renegotiate rents at 88 of the company's 178 stores. The proposals are contained in a company voluntary arrangement (CVA), a last-ditch restructuring process, which was launched on Thursday. TOFS employees are said to have been briefed on the plans. The chain sells beauty brands such as L'Oreal, the sportswear label Adidas and DIY tools made by Black & Decker. It employs about 2,000 people, with a proportion of its 176 head office and warehouse employees understood to be facing redundancy. Creditors will be asked to vote on the plans at a meeting in mid-May. The CVA is being handled by Interpath Advisory. Although there are no definite store closures, people familiar with the plans said half of TOFS' estate was at risk if landlords did not agree to the rent demands. It is the second such brutal restructuring to be launched by a Modella Capital-owned retailer this week. Sky News revealed on Tuesday that Hobbycraft, which the investor also owns, is also launching a CVA which would entail the closure of nine shops. Hundreds of jobs could be at risk there too if rent cuts are not acceded to. The blueprint risks becoming a controversial one for Modella and for WH Smith, which has just agreed the sale of its high street arm to the investment firm. Retail insiders believe a similar restructuring is inevitable at WH Smith, which Modella has said will be renamed in town centres as TG Jones. "In response to the challenging retail environment of the last year, The Original Factory Shop (TOFS) has today announced a proposed Company Voluntary Arrangement (CVA) in order to protect the future of TOFS as a business and to allow it to flourish in the future," a statement from the company said. "Under TOFS' plan, which will be subject to a vote by the company's creditors on May 14, TOFS will adjust its store estate (by, where possible, renegotiating the leases on a number of its stores that are loss-making), return to the deal-centric stock and purchasing strategy it is famous for, invest in online channels, and re-align its support centre and logistics operations. "All employees have been informed of the CVA proposal. "A redundancy consultation will begin with employees in those TOFS stores where the company is seeking to renegotiate the lease, in the event that those negotiations are not successful. "There will also be a reduction in the number of employees in the company's Head Office and Warehouse in Burnley. "There will be no change in the day-to-day running of the business while this plan is implemented, and management will keep all TOFS colleagues updated as the process continues. "While these changes are necessary, TOFS remains committed to serving our loyal customers across the UK. "Our plan aims to put the business on sustainable footing, protecting as many jobs as possible, and allowing us to return to offering the exceptional value and deals our customers expect from us." TOFS, which was founded in 1969, was bought by the private equity firm Duke Street in 2007.
