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Опубликовано
27 июн. 2018 г.
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Tofs plans 32 store closures after CVA

Опубликовано
27 июн. 2018 г.

It looks like speculation around the closure of some stores by The Original Factory Shop (Tofs) has been correct with news this week that its company voluntary arrangement (CVA) is likely to see more than 14% of stores being shut.


Tofs could close 32 of its stores



Reports suggest that a sizeable chunk of its branches will go with a plan to close 32 out of 224 shops.

The company’s owner Duke Street Capital has already negotiated a funding deal with lenders to provide £10 million, although this is dependent on Tofs achieving major cost reductions.

The discounter has been one of the casualties of the tough retail market in Britain during recent periods and saw its profits falling last year, despite turnover rising. Although operating profits rose, pre-tax profits fell by 33% to only £4.74 million on turnover of £190 million. And in the spring, its credit insurance cover was ended by Euler Hermes on the back of store closure news stories.

The planned store closures would see its staff bill being cut but would also help it reduce its rent and business property tax bills that have been a major problem for UK retailers lately.  

Tofs sells a wide variety of goods at low prices, including clothing, interiors ranges, DIY and toys.

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