Original Factory Shop chief executive George Foster said he is “very excited about the future prospects for the group”.
In October, the chain was put up for sale by its owner, Barclays Private Equity, which has made a substantial amount of money from the investment, said Foster.
He said the new owner will accelerate expansion plans for the chain, opening up to 20 stores a year. Earlier this year, the retailer, which operates from 84 stores, revealed that it plans to open 15 outlets a year over the next three years.
Foster said: “We are confident about next year. It’s going to be tough, but we’ve got a formula that works. We’ve seen a return to local shopping with the growth of Tesco and Sainsbury’s local stores.”
Duke Street Capital partner Tim Lebus added: “The long-term prospects for the value-retail sector are excellent.”
In the six months to September 30, the retailer’s profits soared 15.9 per cent on total sales up 15.6 per cent. Its like-for-likes rose 4.8 per cent over the period.
Retail Knowledge Bank senior partner Robert Clark said: “The sale is an injection of funds to take the operation forward. It is interesting timing – why are they doing it now? Duke Street must have driven a fairly hard bargain.”
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