Just-bought discount retailer TOFS (The Original Factory Shop) could see its UK store count drastically reduced.
TOFS
New owner Modella Capital is contemplating a Company Voluntary Arrangement (CVA) to close a number of its 180 retail units, according to Sky News.
The variety retailer, which sells a number of major brands including L’Oreal beauty and Adidas sportswear, was acquired last month from private equity firm Duke Street for an undisclosed sum. Modella’s now understood to be in talks with business adviser Interpath on options for the retail group, including a potential CVA, which would result in cutting the retailer’s 1,800-strong workforce.
At the same time, Modella is also drawing up plans for a radical restructuring of the retailer. This will also include discussions with landlords over rent reductions for a number of surviving stores. Reports also claim a TOFS distribution centre will be a focus of those restructuring plans.
TOFS, which was founded in 1969 and then acquired by Duke Street in 2007 for £68.5 million, is understood to had also come under the bidding scrutiny of usual suspect Frasers Group, Baaj Capital and Poundstretcher, which is owned by the investment group Fortress the report also said.
