140 Original Factory Shop branches face closure as rescue bids continue
More than one hundred shops and over a thousand jobs remain at serious risk as the search for a new buyer for The Original Factory Shop (TOFS) continues. Owner Modella Capital has reportedly received two bids to purchase the struggling retail chain, but no definitive agreement has yet been reached to secure its future.
Administration threat extended as bids are considered
Modella Capital has formally extended its notice of intention to appoint administrators for TOFS, according to industry reports. The company stated earlier this month that it had no alternative but to initiate insolvency proceedings for both TOFS and Claire's Accessories, attributing the decision to the profoundly challenging economic environment on Britain's high streets.
"We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again," a company spokesman explained earlier this month. "In these circumstances, administration is the only option. In both cases, the legacy effects of trading prior to our ownership left them highly vulnerable."
Broader retail struggles highlighted by owner
Modella has pointed to a combination of severe factors creating what it describes as an extremely difficult climate for retailers. The firm specifically mentioned weak consumer confidence, adverse government fiscal policies, and persistent cost inflation as primary contributors to the distress.
"A combination of very weak consumer confidence, highly adverse government fiscal policies, and continued cost inflation, is causing many established and much-loved businesses to suffer badly," the company stated. "It's a simple fact that if retailers can't make money, they risk having to close, and jobs across the country are lost."
Recent acquisitions and closures paint turbulent picture
Modella Capital purchased TOFS in February 2025 and has since closed forty branches of the chain. The company has been an active player in British retail, having also acquired Claire's Accessories in September of the same year and WH Smith's High Street branches in June. However, this expansion has been met with significant operational challenges.
When Modella bought more than 150 Claire's shops last year, 145 additional branches were excluded from the transaction and subsequently closed. Claire's had already appointed administrators for its UK and Ireland operations following bankruptcy proceedings in the United States.
Historical context and current offerings
The Original Factory Shop was originally founded in 1969 by Peter Black, initially selling soap manufactured by its founder. Over the decades, the retailer has evolved significantly, now offering a diverse and frequently changing inventory that spans multiple categories including fashion and footwear, home and gardening products, beauty and fragrance items, groceries, and electrical goods.
Modella Capital has become a notable force in the British retail sector, having also purchased the craft retailer Hobbycraft in 2024. The current situation with TOFS and Claire's represents a significant test for the company's retail portfolio strategy amid what it describes as unprecedented market challenges.
