The Original Factory Shop has exited its head office and distribution centre in Burnley amid a restructuring process under new owner Modella Capital.
The variety discounter is relocating to a new head office in Bolton, with distribution to be handed over to a third party. It follows the business entering a company voluntary arrangement (CVA) in April, according to accounts at Companies House.
Under the terms of the CVA, which was approved by creditors in May, TOFS also plans to pay little or no rent on some poorer-performing stores for a period of between four and 22 months. Landlords have the right to terminate leases.
“As part of our restructuring programme, we are outsourcing our distribution centre and moving our support centre from Burnley to Bolton,” a TOFS spokesperson told The Grocer. “We continue to work hard with our landlords to ensure the profitability of our store estate going forward.
“We remain committed to supporting our affected employees through this transition, and we are working closely with them to explore alternative opportunities where possible.
“We thank our customers for their continued support and understanding.”
TOFS fell to a loss after tax of £5.6m in the year to 31 March 2024, compared with a £1.7m loss the previous year.
EBITDA was £1.6m, down from £4.6m, in “another challenging year with the continued cost of living crisis including the continued impact of recent high inflation and interest rates”.
The retailer opened 27 stores, while lease expiries facilitated the closure of 20 less profitable ones.
TOFS, which has about 180 stores across the UK, was acquired by investment firm Modella Capital in February 2025, and secured additional loan funding of £3m. At the same time, the company renewed an existing £12m flexible asset-backed loan facility for a further four years.
Modella Capital also bought WH Smith’s high street business for £76m in March this year, and is rebranding the stores to TG Jones.
TOFS’ accounts reveal it made another loss in the year ended 31 March 2025.
Posting about the head office relocation on LinkedIn last week, TOFS said: “We’re on the move!
“The Original Factory Shop head office is in the process of relocating from our Burnley office to a brand-new home in Bolton.
“It’s goodbye Burnley and hello to exciting new beginnings – big things are coming, so watch this space.
“Stay tuned to see our brand-new office.”
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