The Original Factory Shop, a long-standing presence in UK town centres, is facing one of its most challenging years. Multiple stores have already closed, and more are expected to shut in the coming weeks.
Some sites are up for sale, while others are negotiating to remain open. This shift is part of a broader restructuring strategy, designed to respond to mounting financial pressures and changing retail habits.
As closures continue, communities are left wondering whether their local branch will survive or become another casualty of the changing high street.
Why Are The Original Factory Shop Closures Happening in 2025?
The current wave of closures has been triggered by a mix of internal restructuring and external retail challenges. Together, these forces have reshaped the way the company operates and the size of its store network.
The Role of Modella Capital in the Restructuring
When Modella Capital acquired The Original Factory Shop in early 2025, it brought both investment and a mandate for change. The new owners quickly reviewed the company’s financial position and made bold decisions about its future.
Their strategy has included:
- Identifying branches with strong long-term potential.
- Renegotiating expensive leases to cut ongoing costs.
- Streamlining supply chains to improve product margins.
This wasn’t a quick fix but a structural shift designed to safeguard the company. Unfortunately, that meant closing stores that had consistently underperformed, even if they were well-loved by their communities.
Modella’s goal has been to focus resources where they could achieve sustainable growth, even if that meant difficult short-term losses.
Challenging Retail Conditions and Loss-Making Stores
The wider retail environment has also worked against large physical store networks. The Original Factory Shop has felt the strain from:
- Higher operational costs, especially for utilities and staffing.
- Increased online shopping, reducing in-store footfall.
- Regional economic differences affecting consumer spending.
These pressures have hit discount retailers particularly hard. Stores in areas with lower traffic or higher rent costs quickly became difficult to justify. By closing such locations, the company hopes to stabilise its finances while concentrating on branches with proven performance and growth opportunities.
Which TOFS Stores Have Already Closed, and Which Are Next?
This year has already seen an unprecedented number of store closures for the brand, with more still on the horizon.
Full List of 2025 Store Closures with Dates
The table below lists the confirmed 2025 closures in date order, showing the wide geographical spread of affected locations.
| Date Closed | Location | Region |
| 26 June | Milford Haven | Pembrokeshire |
| 28 June | Arbroath | Angus |
| 28 June | Chester Le Street | County Durham |
| 28 June | Kidwelly | Carmarthenshire |
| 28 June | Middlewich | Cheshire |
| 28 June | Normanton | West Yorkshire |
| 28 June | Pershore | Worcestershire |
| 28 June | Perth | Scotland |
| 28 June | Peterhead | Aberdeenshire |
| 28 June | Shaftesbury | Dorset |
| 12 July | Staveley | Cumbria |
| 20 July | Bridlington | Yorkshire |
| 20 July | Caernarfon | Wales |
| 21 July | Matlock | Derbyshire |
| 27 July | Cupar | Fife |
| August | Kirkham | Lancashire |
| 7 August | Caldicot | Wales |
| 20 September | Market Drayton | Shropshire |
This list reflects both planned and completed closures, showing just how fast the process has moved across multiple regions.
Stores Listed for Sale and Under Negotiation
Some locations are not yet confirmed for closure but face an uncertain future.
| Store Status | Location | Region |
| For Sale | Nairn | Scotland |
| For Sale | Market Drayton | Shropshire |
| For Sale | Troon | Scotland |
| For Sale | Blairgowrie | Scotland |
| For Sale | Castle Douglas | Dumfries and Galloway |
| Negotiation | Middlewich | Cheshire |
| Negotiation | Heswall | Wirral |
| Negotiation | Kinross | Scotland |
If sales or lease agreements fall through, some of these could still join the closure list later this year.
Are Closing Down Sales Part of the Strategy?
Yes, closing down sales have become a standard feature in the company’s exit plan for certain locations. These events are not simply clearance exercises, they are carefully timed to draw maximum footfall in the final weeks of trading.
Shoppers have seen reductions of between 30% and 70% across entire product categories, including fashion, home furnishings, seasonal décor, and toys.
These sales serve multiple purposes:
- Quick revenue boost: Generating cash before the branch shuts.
- Stock clearance: Reducing the cost and logistics of transferring goods elsewhere.
- Community engagement: Encouraging loyal customers to make one last visit.
The atmosphere in these stores during the final sales is often a mix of excitement and nostalgia. Bargain hunters enjoy the discounts, but many regulars use the opportunity to thank staff personally and share their memories of shopping there.
What Does the Company Voluntary Arrangement (CVA) Mean for TOFS?
A Company Voluntary Arrangement is essentially a formal lifeline for businesses facing financial strain, allowing them to continue trading while restructuring their debts and obligations.
For The Original Factory Shop, the CVA process has meant identifying where operational costs can be reduced and where resources should be reinvested.
In practice, this has involved:
- Renegotiating leases to bring rent costs in line with store performance.
- Adjusting store layouts and stock to focus on best-selling items.
- Prioritising profitable locations over those with persistent losses.
While the CVA gives breathing room, it comes with hard decisions. If a landlord refuses rent reductions or sales remain below target, that store is likely to close.
For TOFS, the CVA represents both a challenge and an opportunity, a way to reshape its presence while avoiding the risk of complete collapse.
How Will the Closures Affect Local Communities and Jobs?
The effects of these closures will ripple far beyond the store’s own staff and customers.
Economic impact:
- Loss of part-time and full-time retail jobs in already tight local job markets.
- Reduced spending power within the community as wages are lost.
- Potential drop in property values in town centres as more units sit vacant.
Social impact:
- Fewer shopping options, especially in rural and smaller towns.
- Decline in foot traffic, affecting other nearby businesses such as cafés, newsagents, and service providers.
- Loss of a familiar meeting place for residents, particularly older shoppers who prefer in-person browsing.
In some towns, TOFS was the only large-scale discount retailer, meaning residents will now have to travel further to find similar products at similar prices. This can be especially challenging for those without access to a car or affordable public transport.
Could More Stores Still Be Saved from Closure?
There is still a realistic possibility that certain stores could remain open if negotiations succeed or if short-term sales improve significantly.
Some landlords may agree to rent cuts to avoid having their properties sit empty, while community petitions and local council involvement could also influence outcomes.
However, saving a store is not just about cutting costs. The branch must also demonstrate it can generate steady revenue to justify its place in the network.
In some cases, targeted local marketing or seasonal promotions could temporarily boost sales and improve a store’s viability. While the overall trend is toward a leaner network, these strategies might help protect a few key locations from joining the closure list.
How Are Customers Responding to the News?
The customer reaction to the closures has been passionate and deeply personal. Social media has been filled with messages of sadness, gratitude, and support for staff.
Many shoppers share memories of buying their first homeware items or holiday gifts from the store, highlighting its role in everyday life.
Common themes in responses include:
- Disappointment: “Another good store gone” is a frequent sentiment.
- Appreciation: Customers often praise the friendliness and helpfulness of staff.
- Concern for employees: Many express hope that workers quickly find new jobs.
In some towns, customers have even brought flowers and thank-you cards to staff in the store’s final days. Such gestures show that, for many, TOFS was not just a discount shop but part of the community’s identity.
Is This a Sign of a Larger UK High Street Decline?
Yes, the wave of TOFS closures mirrors a broader and long-running decline in UK high streets. Multiple factors contribute to this trend: rising rent and rates, increased online competition, and changing consumer habits.
Many shoppers now combine online purchases with occasional visits to physical stores, leading to fewer impulse buys and lower in-store revenue.
TOFS is not the first and will not be the last retailer to scale back in this environment. Large department store chains, clothing retailers, and even some supermarkets have reduced their physical footprint in recent years.
The closures highlight the need for retailers to adapt, whether through smaller store formats, click-and-collect services, or expanding online offerings, to remain relevant in today’s market.
Conclusion
The Original Factory Shop’s closures in 2025 reflect both the challenges of the UK high street and the realities of running a discount retail chain in a changing economy.
While some stores may yet be saved, the overall direction points toward a leaner, more strategically placed network. For communities losing their local branch, the impact will be felt long after the final sale signs come down.
FAQs About The Original Factory Shop Closures
When did Modella Capital acquire The Original Factory Shop?
Modella Capital acquired the business in early 2025 as part of a retail investment strategy. Their goal was to restructure and stabilise the brand.
How many TOFS locations are still operating in the UK?
After the 2025 closures, around 160 locations are expected to remain, though this number may change with ongoing negotiations.
What types of products does TOFS typically sell?
The stores offer a range including clothing, home goods, toys, and seasonal items, all at discount prices.
Have any TOFS stores been saved from closure in the past?
Yes, some locations have remained open after successful rent negotiations or improved local sales performance.
How does a store being “up for sale” differ from confirmed closure?
A store for sale may still operate until purchased, while a confirmed closure has a set end date.
Are there other discount chains facing similar challenges?
Yes, several UK discount retailers have faced closures in recent years due to similar economic and market pressures.
Could TOFS expand online to offset physical store losses?
An increased online presence could help recover lost revenue, offering nationwide access to products.
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