SHUTTING UP SHOP
Discount chain with nearly 200 branches to close another store amid shake up
The closure of the 'lovely' store has disappointed local shoppers
A DISCOUNT store with almost 200 branches has confirmed the closure of another branch amid a shake up.
The Original Factory Shop (TOFS) will close a branch in Great Harwood in Lancashire later this month.
1
Fans have lamented the closure of the "lovely" store, which they said had "amazing" staff.
Commenting on a social media post confirming the closure one said: "Such a loss to our little town, not only the store but the most amazingly helpful, hardworking, friendly, dedicated team of amazing staff."
Another said: "Sorry to hear it....it's such a lovely store to potter round."
A third added: "Great loss to Gt. Harwood and surrounding area."
READ MORE IN MONEY
Explaining the reasons for the closure a spokesperson from TOFS said: “We can confirm that sadly we will be exiting our store in Great Harwood on February 28, after the landlord served a break to end the lease of this store early.
"We are working hard to support the colleagues that will be affected and are seeking to redeploy them across our business."
The Great Harwood store has launched a clearance sale ahead of the closure with up to 50% off prices.
The discount store's nearest branch for shoppers in the area will then be in Clitheroe, six miles from the closed shop.
Most read in Money
This closure is the result of a landlord ending the lease, but there has been speculation around the future of the wider business in recent months.
Despite a search at the end of 2024 the discount retailer did not manage to secure a buyer, raising concerns about its future.
Toys R Us and other brands that are making a comeback
It's understood that Teneo, a strategic advisory firm, was subsequently called in to explore all options, including another attempt to flog the chain.
It was understood that the prospect of store closures or a company restructuring could also be considered.
In December a spokesperson for the retailer said: "The Original Factory Shop has been offering communities a great range of products at unbeatable value since 1969.
"Like many retailers, the company continually reviews its outlook and is exploring a range of strategic options.
"The business continues to trade as normal and is expected to perform well over the busy Christmas period."
A deal with Baaj Capital could be close,
It's important to note that strategic options can mean a variety of different things, and for now, all shops are open for business as usual.
The brand currently trades from 187 stores across the UK.
TOFS has shut 10 of its shops over the last 12 months and these were located in:
- Brightlingsea, Essex
- Bodmin, Cornwall
- Chepstow, Wales
- Fakenham, Norfolk
- Harwich, Essex
- Mildenhall, Suffolk
- Padiham, Lancashire
- Taunton, Somerset
- Deal, Kent
- Haverfordwest, Wales
Last year wasn't the first time TOFS has been on the market.
In 2023, current owners Duke Street Capital, who've been at the helm since 2007, tried to sell up through Deloitte, but no deal was struck.
Back in 2013, the chain was valued at over £100million, but more recent financial results showed a dip in both revenue and profits.
The business ended the year to March 2023 with a pre-tax loss of £286,000.
Despite the closures, the retail chain also opened 27 stores in 2024 and still has plans to continue its "store transformation" programme this year.
Here is a full list of stores that have opened since August 2023:
- Kirkintilloch - opened August 24
- Stonehaven - opened August 31
- Blandford Forum - opened August 31
- Haddington - opened September 7
- Wetherby - opened September 7
- Nairn - opened September 14
- Ashbourne - opened September 14
- Castle Douglas - opened September 21
- Penrith - opened September 21
- Inverness - opened September 28
- Attleborough - opened September 28
- Ayr - opened October 5
- Ringwood - opened October 5
- Perth - opened October 12
- Lanark - opened October 19
- Peterhead - opened October 26
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.
What else is happening on the high street?
High street retailers have struggled in recent years as shoppers increasingly turn to online retail.
High energy costs and business rates have hit retailers hard.
This has left some businesses grappling with budgets and having no choice but to close stores to cut costs.
Many Brits have turned to second-hand outlets such as Vinted and eBay, making things even harder for charity shops.
Several well-known major brands have fallen into administration including Wilko and Paperchase.
Last year, Homebase said it would put 74 sites up for sale after it crashed into administration.
READ MORE SUN STORIES
However, its administrators were able to strike a deal to sell the business to retail group CDS, which owns bargain chains The Range and Wilko.
This secured the jobs of 1,600 employees and 70 stores - all of which are set to be rebranded as The Range shops.
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.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Facebook group to share your tips and stories
Topics