The Original Factory Shop – which employs around 2,000 people – has been struggling in recent years, and as part of its plans to bounce back it is shutting its loss-making stores
A major UK discount chain is closing 10 high street stores over the coming weeks as part of a restructuring plan. The Original Factory Shop – which employs around 2,000 people – has been struggling in recent years, and as part of its plans to bounce back it is shutting its loss-making stores.
Overall, a total of 10 stores are closing between now and the end of July. Nine are closing towards the end of this month, with a final one to pull down the shutters in July.
The retailer’s Milford Haven branch in Pembrokeshire will be the first to close, closing for good on June 26. Just two days later, on June 28, eight more branches will close.
The branches set for closure that day are in Perth, County Durham, Angus, Carmarthenshire, Worcestershire, West Yorkshire, Aberdeenshire, and Dorset. Finally, the Staveley branch in Cumbria is shutting for good on July 12.
However, the chain’s Nairn store is listed as “up for sale” and the company told the Sun newspaper that negotiations were currently ongoing with the landlord. The Original Factory Shop has not confirmed how many staff members will be impacted by the closures.
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Earlier this year, the retailer’s owner Modella Capital launched plans to renegotiate rents at 88 stores through a company voluntary arrangement (CVA). This is an agreement between a business and its creditors that allows debts to be paid off over a fixed period of time.
A spokesperson for The Original Factory shop recently 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.”
Full list of The Original Factory Shops closing
- Milford Haven, Pembrokeshire – June 26
- Perth – June 28
- Chester Le Street, County Durham – June 28
- Arbroath, Angus – June 28
- Kidwelly, Carmarthenshire – June 28
- Pershore, Worcestershire – June 28
- Normanton, West Yorkshire – June 28
- Peterhead, Aberdeenshire – June 28
- Shaftesbury, Dorset – June 28
- Staveley, Cumbria – July 12
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