Latest news with #retailstruggles
The Sun
22-05-2025
- Business
- The Sun
Beloved shoe retailer to shut shop after 21 years on the high street as it launches 50% closing down sale
A POPULAR shoe shop that has been a fixture in the city centre for over two decades is preparing to close its doors for good — and everything must go. Siddalls of Norfolk, based on St Stephens Street in Norwich, is shutting up shop at the end of September after 21 years of trading. The closure comes as the business struggles with reduced footfall following the loss of Debenhams, which once stood opposite the store. Part of a family-run company founded 89 years ago, Siddalls' main store in Holt will remain open. The Norwich branch is now offering 50 per cent off old stock and 15 per cent off new items as part of a major closing down sale. Managing director Sean Siddall confirmed the lease in Norwich will expire in September, explaining wider retail challenges that have affected footfall and business costs in the area. He said: 'Since Covid, retailing in Norwich has been more difficult and then there was also the government's national insurance increase for businesses. "We are absolutely gutted to do this but it's just one of those things.' The loss of Debenhams, which closed its doors in 2021, has had a knock-on effect on neighbouring shops, with many reporting a drop in customers. Siddalls is the latest in a string of independent retailers struggling to stay afloat on the high street. Norwich branch manager Toni Uttling said it had become increasingly difficult to attract passing trade in the years since Debenhams shut. Still, she remains grateful to the store's regular customers. 'It was a bit of a shock. Customers have come in and said how sad they are. "It's heart breaking for them because they've relied on us for so long,' she said. Ms Uttling, who has worked at the branch for over a decade, paid tribute to her colleagues and the dedication they've shown through challenging times. 'We had a lady who retired last year and I remember when I started, she taught me everything I needed to know. "The staff have been brilliant. Our team is very hardworking and we are all quite proud of the shop. We've all wanted it to do well.' The closure is a blow to shoppers looking for traditional service and well-fitted shoes, something Siddalls has built a strong reputation for over the years. One loyal customer told staff they were 'devastated' by the news, adding that finding another shoe shop with such personal service would be difficult. Local businesses in the area have expressed concern about the number of empty units on St Stephens Street, with calls for more support to help keep footfall strong and preserve the character of the city's shopping scene. In the meantime, the team at Siddalls is urging customers to pop in for one last browse and to take advantage of the discounts while stock lasts. The shop will officially close at the end of September. The closure of Siddalls of Norfolk in Norwich is part of a broader trend of high street retailers shutting their doors across the UK. Economic pressures, changing consumer habits, and rising operational costs are contributing to a wave of store closures. In Huddersfield, 17-year-old Stephen Mallalieu announced the closure of his card shop, Imperial Cards, stating low revenue and urging local authorities to revitalise the town centre. Stephen expressed his disappointment, stating: 'It's been a pleasure being part of the Imperial Arcade family, but nobody is spending money in Huddersfield.' Meanwhile, Poundland faces significant uncertainty as up to 200 of its stores may close. Its parent company, Pepco Group, plans to sell Poundland by the end of its current financial year in September 2025. Store closures have already begun, with several UK locations shutting down, including sites in Gravesend, Clapham Junction, and Liverpool. 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." 2
The Sun
22-05-2025
- Business
- The Sun
Major bargain retailer with 178 shops to shut five sites starting in days – is your local on the list?
A MAJOR bargain retailer is shutting five of its locations, including two in just days. The Original Factory Shop has been struggling in recent years and has said it will have to close some of its loss-making stores as part of a restructuring. 1 The next locations to shut for good are Pershore and Normanton - both on June 28. The Normanton store said in a Facebook post: "We as a store regret to inform you all that the store is closing down on the 28th june. "Live from today we have up to 30% off in store." This includes 30% off Christmas and pet items, and 10% off beauty, cleaning, electrical items and footwear. Everything else will be 20% off. Devastated shoppers responded: "Ooohhh noooo is something else coming ?" Others expressed their concern for the shop workers, with one saying: "I'm sorry to hear that girls. Hope you are all ok." Another added: "So sorry to hear this… In our thoughts from one team to another." The Pershore store also announced its closure in a Facebook post, saying: "We regret to inform you that the rumours are true The Original Factory Shop Pershore has served you for 30+ years, and will be closing its doors for the final time on June 28th." It advertised "massive closure reductions" but didn't give any further details. Beloved department store chain shutting more locations with clearance sales on now until final May 25 deadline Shoppers said they were "gutted" and it was "such a shame". One added: "Noooo! That's rubbish I literally always find what I need when I come in." The three other stores set to close are Peterhead, Staveley and Milford Haven. Peterhead is due to close in June, although no exact date has been given. The location has been listed for rent and staff have confirmed its upcoming closure. Staveley will shut for good on July 12. It said in a Facebook post that it was closing "with a heavy heart" after 20 years. It's unclear exactly when Milford Haven will close but it has launched a 30% off sale. Meanwhile the Original Factory Shop store in Nairn, Scotland, has been listed as up for sale. The retail unit is already listed for sale on the TSA Property Consultants website, suggesting it is likely to close soon. The Sun has contacted The Original Factory Shop for comment. The Original Factory Shop's owner, Modella Capital, had recently launched a restructuring effort to renegotiate rents at 88 of its stores. A spokesperson 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." Bargain chains have had mixed success during the cost of living crisis. While stores like B&M and Home Bargains appear to have profited, The Original Factory Shop and Poundland have taken a hit. The Original Factory Shop was sold to private equity firm Modella Capital, which also owns Hobbycraft, in February. At the end of April it drew up plans to initiate a company voluntary arrangement (CVA). Companies often use CVAs to prevent insolvency, which could otherwise result in store closures or the collapse of the entire business. They allow firms to explore different strategies such as negotiating reduced rent rates with landlords. As we've mentioned, for The Original Factory Shop this has involved trying to renegotiate rents at 88 of its 178 stores. But landlords don't have to agree to reduced rents and this can result in stores closing. The Original Factory shop has already shuttered more than a dozen stores over the past 12 months. 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.
The Sun
15-05-2025
- Business
- The Sun
Major discount store with 178 shops confirms it will shut two more locations as closing down sales launched
A MAJOR discount store with 178 shops has confirmed the close of two more sites. The Original Factory Shop (TOFS) will bring down the shutters on stores in Cumbria and Pembrokeshire starting in weeks. 1 The closures follow just weeks after the retailer's owner, Modella Capital, launched a restructuring effort to renegotiate rents at 88 of its stores. However, despite these efforts, TOFS' store in Market Place, Staveley, 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. "We have loved being a part of this community, in fact, no we are proud! "Why not pop in and grab a bargain or to even say hello and goodbye." TOFS' store on Charles Street, Milford Haven, has also announced its closure with the launch of a 30% off closing-down sale. "Up to 30% across all items." TOFS was contacted for comment. Why are shops closing stores? 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.
