The proprietor of The Original Factory Shop, considered one of Britain’s greatest impartial low cost retailers, is firing the beginning gun on a sale course of after greater than 15 years.
Sky News understands that Duke Street, TOFS’ proprietor since 2007, is working with advisers at Deloitte on discussions with potential patrons.
Sources stated plenty of commerce and monetary buyers had expressed an curiosity within the firm, the probably valuation of which was unclear on Tuesday.
TOFS trades from about 180 shops throughout the UK, and it’s understood to be concentrating on the acquisition of as much as 30 extra retailers from troubled retail rivals.
It sells manufacturers together with Adidas, Calvin Klein, Jimmy Choo, L’Oreal and Under Armour at substantial reductions to excessive road costs.
In 2018, the corporate closed roughly 30 shops via a restructuring course of known as an organization voluntary association.
That deal cleared the best way for hire cuts as Duke Street sought to place TOFS on a extra sustainable monetary footing.
Established in 1969, TOFS employs greater than 1,500 individuals and recorded earnings earlier than curiosity, tax, depreciation and amortisation final yr of near £7m.
It final modified palms in 2007, when Duke Street purchased the corporate for £68.5m from the personal fairness arm of Barclays.
That 15-year length is an unusually lengthy one by the requirements of the personal fairness trade.
Analysts have stated that TOFS is more likely to be enticing to patrons at a time when inflationary pressures are driving customers to value-driven retail choices.
Duke Street declined to remark.
Source: information.sky.com”