‘Dozens’ of The Original Factory Shop’s branches could close under CVA plans by new owner Modella Capital.
The private equity group, which also owns Hobbycraft and WH Smith’s high street operations, is preparing to impose steep rent cuts for the discount chain’s store landlords through the company voluntary arrangement, according to Sky News.
Significant store closures and job losses could form part of the TOFS restructuring plan, as well as demands for two-year rent-free periods at some branches, it reported.
It says it has been told ‘dozens’ of stores are at risk, along with cuts to its distribution network.
