Discount chain with nearly 200 branches to close another store amid shake up

The business ended the year to March 2023 with a pre-tax loss of £286,000.Here is a full list of stores that have opened since August 2023:

T58HJN The Original Factory Shop front entrance in Rustington, West Sussex, England, UK. — The Original Factory Shop has confirmed plans to close a Lancashire store

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 business continues to trade as normal and is expected to perform well over the busy Christmas period.”It was understood that the prospect of store closures or a company restructuring could also be considered.”Like many retailers, the company continually reviews its outlook and is exploring a range of strategic options.

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Falling store sales and rising staff costs have made it even more expensive for shops to stay open.Last year, Homebase said it would put 74 sites up for sale after it crashed into administration.

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The Original Factory Shop (TOFS) will close a branch in Great Harwood in Lancashire later this month. “We are working hard to support the colleagues that will be affected and are seeking to redeploy them across our business.“Fans have lamented the closure of the “lovely” store, which they said had “amazing” staff. The company grew steadily, reaching 185 stores by 2011 and expanding its headquarters and warehouse in Burnley to accommodate its increasing needs.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.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.”A DISCOUNT store with almost 200 branches has confirmed the closure of another branch amid a shake up.A third added: “Great loss to Gt. Harwood and surrounding area.”Several well-known major brands have fallen into administration including Wilko and Paperchase.

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.The British Retail Consortium has predicted that the Treasury’s hike to employer NICs from April 2025, will cost the retail sector £2.3billion.The Sun’s business editor Ashley Armstrong explains why so many retailers are shutting their doors.FOUNDED in 1969 by the Black family in Keighley, the first shop was part of Peter Black’s retail network. Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and storiesThis has left some businesses grappling with budgets and having no choice but to close stores to cut costs.

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

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.

The problem is that when a big shop closes, footfall falls across the local high street, which puts more shops at risk of closing.EMPTY shops have become an eyesore on many British high streets and are often symbolic of a town centre’s decline.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 many cases, retailers are shutting stores because they are no longer the money-makers they once were because of the rise of online shopping.The Centre for Retail Research (CRR) has warned that around 17,350 retail sites are expected to shut down this year.Many Brits have turned to second-hand outlets such as Vinted and eBay, making things even harder for charity shops.

What else is happening on the high street?

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.The Great Harwood store has launched a clearance sale ahead of the closure with up to 50% off prices. Over the years, TOFS evolved from its humble beginnings, expanding its product range to include clothing, homeware, beauty products, toys, and more.Despite the closures, the retail chain also opened 27 stores in 2024 and still has plans to continue its “store transformation” programme this year.Another said: “Sorry to hear it….it’s such a lovely store to potter round.”It became known for offering a diverse selection of well-known brands at discounted prices.

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TOFS has shut 10 of its shops over the last 12 months and these were located in:It’s understood that Teneo, a strategic advisory firm, was subsequently called in to explore all options, including another attempt to flog the chain.

Why are retailers closing shops?

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.

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. 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.Initially, it focused on selling surplus soap produced by one of Black’s factories, offering local communities great value.In 2007, the chain was acquired by private equity firm Duke Street Capital.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.Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.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.This secured the jobs of 1,600 employees and 70 stores – all of which are set to be rebranded as The Range shops.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. 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.The brand currently trades from 187 stores across the UK.

Despite a search at the end of 2024 the discount retailer did not manage to secure a buyer, raising concerns about its future.Since then, TOFS has undergone various transformations, including store closures and openings, as it adapted to the changing retail landscape.