The Original Factory Shop closes all stores with majority of 1,180 employees made redundant

Independent discount retail chain The Original Factory Shop (TOFS) closed all of its 137 stores earlier this month, resulting in the redundancy of the majority of its 1,180 employees.

There were no viable offers made to take the business forward, so it was "not possible for The Original Factory Shop to continue trading", according to independent financial advisory firm Interpath.

As a result, Interpath said the majority of TOFS' employees were made redundant, with only a small number of staff retained to assist the joint administrators in winding up the business.

Its owner, Modella Capital, appointed joint administrators for TOFS on 28 January 2026, less than a year after purchasing the business in early 2025.

Immediately following the appointment, its online store was closed, although TOFS' store portfolio initially continued to trade while the administrators assessed options. A phased closure of the store portfolio then followed, "considering the financial position", according to Interpath.

Founded in 1969, TOFS used to operate more than 180 stores across the UK, offering products from well-known brands such as L’Oréal, Adidas, and Black & Decker. Duke Street, which supported the retailer with a £10 million investment in 2018, had owned the chain for 17 years.

Back in 2018, TOFS had its Company Voluntary Arrangement (CVA) approved by creditors, resulting in the planned closure of approximately 10% of its stores and placing numerous jobs at risk.

As part of the CVA, TOFS shuttered 32 of its 224 stores and implemented rent reductions across the remaining locations. The retailer also closed its distribution centre as part of the restructuring.

At the time, a TOFS spokeswoman said that the CVA approval would put "the business on a much stronger financial footing" to achieve its turnaround plan.