Over 1,200 jobs at risk
A number of stores are set to close earlier than expected of a major UK high street retailer which has entered administration.
A number of large retailers and business have been struggling in the UK in recent months.
Poundland, River Island, Claire’s, and a number of travel agents have flirted with administration, been forced to restructure, or disappeared completely from the high street.
With discount chain store The Original Factory Shop (TOFS) entering administration at the start of the year, a number of stores are closing earlier than expected.
The chain was bought by Modella Capital last year and was already on the brink of collapse when it was acquired by the group.
Its owner Modella said in January that tough trading conditions and “an alarming drop-off in pre-Christmas footfall’ meant administration was “the only option”.
The business employs over 1,200 people.
TOFS opened its first shop in the late 1960s and has around 130 stores nationwide.
TOFS collapse comes after Claire’s, also owned by Modella, appointed administrators at the start of the year.
Claire’s appointed Kroll as administrators to its UK and Irish operations, a move which could put around 1,300 jobs at risk.
The retailer’s financial issues are reported to have come from a “combination of government policy, landlords’ demands to take back many of TOFS’ better sites and a poorly handled transition to a new logistics provider”, as per Sky News.
Modella also owns the high-street operations of well-known chain WH Smith’s, which have been rebranded to TG Jones, as well as Hobbycraft.
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