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The Sun
2 days ago
- Business
- The Sun
Major fashion retailer with more than 350 UK stores to shut city centre shop for good TODAY
A MAJOR fashion retailer with more than 350 stores will close a shopping centre location TODAY. New Look will be pulling down the shutters of one of its locations in Birmingham. 1 The store - which is located in the city's Northfield shopping centre - announced the closure to customers through a sign in the window of the store. "Thanks for having us, Northfield," it reads. "This store will be closing on Sunday 8th June. "Don't worry, you'll still be able to find us at with 100s of new styles dropped every week! Scan to download our app for exclusive offers." In the lead up to Sunday's closure, the retailer has launched a major closing-down sale, with prices slashed by up to 70%. The retailer has not confirmed the reason behind the move, it is also uncertain how many staff members will be impacted or whether anyone has been issued a redundancy notice. What's happening at New Look? New Look is ramping up a store closure programme ahead of 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. Final sales begin as popular clothing brand closes all stores leaving 'devastated' shoppers scrambling for alternative For the time being, stores remain open as usual, and no final decisions regarding closures have been made. The move to accelerate store closures is understood to be driven by the forthcoming increase in National Insurance, announced by Chancellor Rachel Reeves in October. Employers currently pay NICs for most workers earning more than £9,100 a year. The sum they pay is the equivalent of 13.8% of the employee's earnings above that threshold. For an employee earning £30,000, the employer would pay NICs of £2,884.20. However, in the Autumn Statement, the Treasury announced it would increase the tax rate to 15% and reduce the threshold at which firms must pay to £5,000. The British Retail Consortium has predicted that these changes will create a £2.3billion bill for the sector. 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." A New Look spokesperson said: "Our store estate is an important part of our business, alongside our best-in-class website and app. "We have recently invested over £3million in our stores in Greater Manchester to trial new omnichannel initiatives to improve customer experience. "We also continue to invest in our thriving online platform which has resulted in a strong online sales performance, with volumes significantly outpacing last year and an improved online margin." "On occasion we do have to close stores, either due to the landlord's request or because the site becomes unviable. "However, we always remain on the lookout for appropriate new opportunities across the country and continue to invest in our existing store estate."
The Sun
26-05-2025
- Business
- The Sun
Major high street chain to close branch in weeks with closing down sale launched as EIGHT others to shut
A MAJOR high street chain is closing one of its branches in weeks as a closing down sale is launched and with eight other shops set to shut. The Original Factory Shop (TOFS) is pulling down the shutters on the site on June 28 with shoppers left gutted. 1 The location in Chester-le-Street, County Durham, will welcome in customers for the final time in weeks after opening two years ago. Shoppers can now get up to 30% off on a host of products including homeware, electricals and storage. In a post on Facebook, TOFS said: "It's with great sadness to announce, but the rumours are true! "The store will be closing its doors for the last time on June 28. "It's been a pleasure bringing you all the great deals over the last two years, getting to know our regulars. "We ask you to be mindful, respectful to the team as you can imagine we are all devastated, but please come say hi." News of the closure has not been met well by locals and customers, with one commenting: "I love this shop and the staff are amazing. "So sorry for you all." Another chipped in: "Absolutely gutted. I get loads of stuff in there. So sad about this." Meanwhile, a third added: "That didn't last long. What a shame." It comes as TOFS gears up to shut eight more stores weeks after saying it may be forced to shut branches and lay off staff. Branches in Abroath (Scotland), Kidwelly (Scotland), Pershore and Normanton are all set to shut permanently on June 28. Meanwhile, stores in Peterhead (Scotland) and Staveley will close in June and on July 12, respectively. Sites in Shaftesbury and Milford Haven (Wales), are also both shuttering, with closure dates yet to be revealed. List of The Original Factory Shop stores to close Arbroath, Angus - June 28 Kidwelly, Carmarthenshire - June 28 Pershore, Worcestershire - June 28 Normanton, West Yorkshire - June 28 Chester-le-Street, County Durham - June 28 Peterhead, Aberdeenshire - June Staveley, Cumbria - July 12 Shaftesbury, Dorset - no date given Milford Haven, Pembrokeshire - no date given The Sun has reached out to TOFS to comment on the Chester-le-Street closure and find out if any other branches are shutting over the coming months and we will update this story when we've heard back. What's happening with The Original Factory Shop? TOFS was bought by Modella Capital in February which has since launched a restructuring effort to renegotiate rents at 88 of the retail chain's stores. Modella, a private equity firm, is known for taking on struggling retailers, having recently acquired Hobbycraft and WHSmith 's high street shops. For Hobbycraft, Modella brought in advisers to look at potential options including a CVA. Meanwhile it is set to rebrand all WHSmith high street stores to TGJones. Modella drew up plans to initiate a Company Voluntary Arrangement (CVA) for TOFS at the end of April. A CVA is a way of restructuring that means a business can continue trading while negotiating its debts, for example by cutting rent costs with landlords. A TOFS spokesperson previously told The Press and Journal a "number of loss-making stores will have to close" as part of the CVA. They continued: "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." The Original Factory shop has already shuttered more than a dozen stores over the past 12 months. These are the locations that closed in 2024: Brightlingsea, Essex Bodmin, Cornwall Chepstow, Wales Fakenham, Norfolk Harwich, Essex Mildenhall, Suffolk Padiham, Lancashire Taunton, Somerset Deal, Kent Haverfordwest, Wales Do you have a money problem that needs sorting? Get in touch by emailing money-sm@
The Sun
24-05-2025
- Business
- The Sun
Major high street retailer with 106 stores to shut shopping centre branch as two others close this week
A MAJOR high street retailer with 106 UK stores is closing one of its branches in months as two others shut this week. Smiggle, founded in Melbourne, Australia, and selling school, birthday and leisure essentials, is shutting a shop in Wales this summer. The store in the Cwmbran Shopping Centre will pull down its shutters for the final time in August, a store member confirmed to The Sun. It's not clear what exact date the location will close, nor the reason it will shut. Reaction to the closure from shoppers has not been positive, with one local even setting up a petition demanding the branch stay open. The petition, which has been signed by over 70 people, reads: "This petition is a heartfelt plea to prevent the closure of our beloved Smiggle store in Cwmbran. "This store is more than just a retail space – it's a vibrant corner of our community, a place where children light up with excitement and adults find joy in a wide array of unique and colourful products. "The closure of this cherished store would not only be a significant loss to the local shopping landscape, but also to the Cwmbran community which benefits from its presence in innumerable ways." The closure of the Cwmbran branch . A store in the Eastgate Shopping Centre, Inverness, shut its doors on Wednesday (May 21), while a store in the Darwin Centre, Shrewsbury, is closing tomorrow (May 25). Both sites launched closing down sales to clear remaining stock, offering discounts of up to 70%. Shoppers have reacted with sadness after finding out the two stores will permanently shut. Britain's retail apocalypse: why your favourite stores KEEP closing down Commenting on the Shrewsbury store closure, one said: "Another one gone. Will be the whole centre soon." Discussing the Inverness branch shutting, one shopper said: "So sorry for the staff, hope customers will be kind to the staff at this difficult time." The Sun asked Smiggle to comment. RETAIL SECTOR STRUGGLES It's worth bearing in mind, larger retail chains often open and close branches based on customer demand and sales. Sometimes a single store might shut because a lease is ending and the chain has decided it is better to direct cash into other shops or opening new ones. However, the retail sector more broadly has struggled since the 2008 financial crash. The Centre for Retail Research has said the industry has been going through a "permacrisis" during this period. There are a number of reasons the sector is struggling, one being the rise of online shopping. This has seen footfall to high street stores fall seeing large swathes of branches close across the UK. Challenging economic conditions in recent years, including soaring inflation, have dented shoppers' wallets and purses too. While some bigger retailers have struggled to stay afloat, including Wilko, in recent years independent shops have suffered the most. The Centre for Retail Research said more than 13,000 high street shops closed in 2024, with over 11,000 of these independents. This is in addition to almost 7,800 independent stores that closed in 2023. RETAIL PAIN IN 2025 The British Retail Consortium predicted that the Treasury's hike to employer NICs will cost the retail sector £2.3billion. Research by the British Chambers of Commerce showed that more than half of companies planned to raise prices by early April. A survey of more than 4,800 firms also 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."
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.
